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Struggling Samsung Electronics Semiconductor,’Snow Wand’ Over Performance

[이코노믹리뷰=박정훈 기자] Last year, Samsung Electronics’ semiconductor (DS) business led the overall performance improvement despite bad news such as the US-China trade dispute and the Huawei shock.

In the midst of this, when Samsung Electronics (005930) announced the contents of the 2020 excess profit incentive (OPI), a response from the insiders of DS business division was’regrettable’.

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Hwaseong Campus where Samsung Electronics’ semiconductor business is located. Source = Samsung Electronics


On the 26th, Samsung Electronics (005930) confirmed the excess performance incentives (OPI) that provide incentives to employees with the excess performance recorded by each business unit over the past year, and announced it in-house.

According to the announcement, the IM (wireless) business unit, which is mainly focused on smartphones, and the VD (video display) business unit, which is mainly TV, set 50% of the contract annual salary as an incentive. 50% is the largest share that Samsung Electronics can apply as OPI.

However, the DS division’s OPI is set at 47%, and there is still a lot of excitement inside. In the crisis of the spread of Corona 19, there is no disagreement that each business unit of Samsung Electronics did its best to achieve results last year, and the compensation returned to the employees, but among the business units, the highest proportion of OPI is applied to the struggling DS segment. There are many internal opinions about what is not.

While Samsung Electronics announced its final results for the fourth quarter of last year soon, semiconductors in the DS division are expected to account for a significant portion of the overall results. Among these, a lot of talk is being talked about that the MC division and VD division, not the DS division, receive the maximum OPI. Of course, the actual OPI received compared to the existing annual salary may not be difficult to accept from the standpoint of DS employees, but there are many disagreements over the simple weight.

For that reason, Samsung Electronics’ internal bulletin board said, “Is the wireless (IM) division achieved the highest proportion of OPI in the past year?”

Meanwhile, an executive at Samsung Electronics said, “It doesn’t mean that other business divisions haven’t worked hard, but the DS division’s employees who have suffered a lot over the past year seem a little sad.”

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