Samsung's semiconductor head says that foundry profitability is being hindered by performance-based bonuses

Samsung Foundry Braces for Mass Exodus as Pay Gap With Memory Division Widens

Samsung’s Bonus Plan Sparks Tension as Foundry Workers Signal They May Leave

Samsung’s latest performance bonus plan is creating a sharp divide inside the company, especially between employees in its booming memory business and workers in other divisions. While memory division staff could be in line for massive payouts, frustration is growing among teams that may receive far smaller rewards despite working under the same corporate umbrella.

The tension is now visible across Samsung Electronics. Some mobile division employees have reportedly shown their dissatisfaction by wearing black clothing to work, symbolizing a form of mourning over the widening pay gap. Meanwhile, workers in Samsung’s foundry business appear increasingly open to leaving for better opportunities.

A recent union-led survey highlights the scale of the discontent. According to the Samsung branch of the United Enterprise Labor Union, 81.5% of 8,297 respondents in Samsung’s Foundry division said they intend to leave their current jobs. In labor survey terms, even a 62% affirmative response is typically considered very high, making the foundry result especially striking.

The dissatisfaction appears to be most severe within Samsung’s Device Solutions business, which includes several key semiconductor-related organizations. In Samsung LSI, 75.4% of workers surveyed said they would consider changing jobs. At the Semiconductor R&D Center, the figure stood at 60.6%. By comparison, only 32.7% of employees in the memory division expressed the same intention, reflecting the stronger financial outlook for that group.

At the heart of the issue is Samsung’s new bonus arrangement for semiconductor workers. Under the agreement, eligible employees could receive a special performance bonus equal to 10.5% of Samsung’s annual operating profit, provided profits pass certain thresholds. These targets are reportedly set at 200 trillion won from 2026 to 2028 and 100 trillion won from 2029 to 2035.

If Samsung’s operating profit reaches around 300 trillion won this year, as current market expectations suggest, employees focused on memory could receive bonuses of about 600 million won, or roughly $400,000, each. That figure has attracted major attention because it is far above the bonus levels expected in other parts of the company.

The gap is especially dramatic when compared with Samsung’s mobile division. Employees there are expected to receive around 6 million won, or about $4,000, in bonuses this year. That would make the memory division payout roughly 100 times larger, fueling concerns over fairness and employee morale.

The timing is also important. Samsung’s memory business is benefiting from surging demand linked to artificial intelligence, high-bandwidth memory, data centers, and advanced computing. As AI-related hardware spending accelerates, memory chips have become one of the company’s most strategically important and profitable businesses.

However, Samsung’s foundry division is facing a more difficult environment. The unit competes in the contract chipmaking market, where advanced manufacturing technology, customer trust, yield rates, and long-term partnerships play a critical role. If employee dissatisfaction leads to resignations, Samsung could face additional challenges in strengthening its position in this highly competitive sector.

Samsung leadership has tried to project confidence. Kim Yong-kwan, President and Head of Business Strategy at Samsung Electronics’ Device Solutions division, reportedly said during a July 3 town hall meeting that the division would meet market expectations for operating profit this year. Analysts currently expect Samsung to post annual operating profit of around 300 trillion won, or about $200 billion.

He also reportedly suggested that Samsung’s Device Solutions profit in 2026 could exceed the total profit the company has earned across roughly four decades since entering the semiconductor business. That statement reflects the enormous optimism surrounding Samsung’s chip business, particularly as artificial intelligence continues to reshape global semiconductor demand.

Still, the company now faces a delicate internal challenge. A bonus plan designed to reward strong performance in one of Samsung’s most important businesses has also created a perception of inequality across divisions. For employees outside the memory unit, the massive pay gap may feel like a signal that their work is being undervalued.

The situation could become a major workforce issue if Samsung fails to address concerns among foundry, mobile, and research employees. Retaining experienced engineers and technical staff is essential in the semiconductor industry, where talent shortages and fierce competition remain constant threats.

Samsung’s bonus controversy shows how success in one business unit can create unexpected pressure elsewhere. As the company rides the AI chip boom and looks ahead to potentially record-breaking semiconductor profits, it must also manage employee expectations, internal fairness, and long-term talent retention.

For now, the message from many foundry workers appears clear: unless Samsung finds a way to narrow the perceived reward gap, a significant number of employees may start looking for opportunities outside the company.