A union survey conducted among employees in Samsung Electronics\’ semiconductor division reveals strong dissatisfaction within their chip manufacturing and design businesses. 81.5% of respondents from Samsung Foundry expressed a high or very high intention to change companies within the next two years, compared to 32.7% in the memory division.
The key points of Samsung’s labor crisis in 30 seconds
- A union survey received responses from 8,297 employees in the semiconductor division.
- Foundry showed an 81.5% intention to leave; System LSI reached 75.4%.
- In memory, the main beneficiary of AI boom, the percentage was 32.7%.
- The new bonus system could generate differences of hundreds of millions of won between areas.
- The survey reflects discontent, but cannot predict how many workers will actually leave.
The study was conducted by Samsung Electronics’ Supra-Company Union, the company’s largest labor organization. It was carried out between June 17 and June 30 and asked about employees’ willingness to change jobs over the next two years.
The average result for Device Solutions (DS), the division encompassing semiconductor businesses, was 49.5%. Foundry was over 30 points higher. Approximately 62% of its participants described their intention to leave as “very high,” and another 19% as “high.”
However, this percentage needs context. The 8,297 participants belong to the entire DS group, and the published information does not specify how many responses came from each area, what proportion of the workforce participated, or how the sample was selected. It also does not mean that eight out of ten employees have already resigned; it measures declared intention in a union survey conducted amid ongoing wage disputes.
Foundry and System LSI concentrate the discontent
The results show a clear divide between memory-related businesses and logic chip areas. Behind Foundry is System LSI, responsible for products like processors, image sensors, and other integrated circuits, with a 75.4% high or very high intention to change companies.
The Semiconductor Research Center reached 60.6%. At the opposite end is the memory business, with 32.7%, nearly 17 points below the DS average.
| Samsung DS Area | High or very high intention to change jobs |
|---|---|
| Samsung Foundry | 81.5 % |
| System LSI | 75.4 % |
| Semiconductor Research Center | 60.6 % |
| DS division average | 49.5 % |
| Memory business | 32.7 % |
The explanation provided by the union and South Korean media points to a special compensation system agreed upon in May between Samsung and its main labor organizations. The plan links a significant portion of bonuses to the profits generated by each business, a structure that especially benefits memory during the current chip demand cycle driven by AI.
The difference is substantial. Estimates circulating in Korea suggest that, under an operating profit scenario of nearly 300 trillion won annually, a memory employee earning 100 million won per year could receive around 550 million in special bonuses and an additional 50 million through an incentive based on profits, known as OPI. Total variable compensation could reach approximately 600 million won before taxes.
For employees in Foundry and System LSI, the published estimate is around 210 million won: about 160 million from the new incentive plus up to 50 million from the OPI. While still a significant amount, it is roughly one-third of what is estimated for memory.
These figures are not guaranteed payments for each employee. They depend on salary, area, final profits, retention conditions, and achievement of objectives outlined in the agreement. Part of the compensation will also be in Samsung stock over a prolonged period, so it does not mean immediate cash receipt.
An agreement built around chip profitability
The salary agreement was approved on May 27 by 73.7% of participants in a vote among Samsung’s two main unions, totaling 62,616 members. The pact averted an 18-day strike that was scheduled shortly afterward.
The new mechanism allocates the equivalent of 10.5% of operational profits within the program to special incentives, without the previous maximum limit. 40% of the fund is distributed uniformly across the division, and 60% depends on each business unit’s performance.
Payments will be made in shares over at least ten years and are tied to profit targets. The pact sets benchmarks such as exceeding 200 trillion won annually between 2026 and 2028, and 100 trillion between 2029 and 2035.
The design seeks to link compensation to the value created by each business; however, it also produces challenging differences within an integrated company. Foundry engineers working on 2-nanometer processes needed for advanced chips might have lower variable pay because their unit currently generates less profit than memory.
The “100 times less” comparison appearing in some reports does not apply to Foundry. That difference stems from comparing the estimated bonus of up to 600 million won for certain memory employees versus the approximately six million in stock options planned for Device eXperience workers in mobile, TV, and home appliance divisions. Estimates suggest the gap between memory and Foundry is about threefold.
Discontent has gone beyond the chip division. Employees in Device eXperience wore black to work, and unions organized protests against what they see as exclusion from the agreement. The mobilization targeted the disparity between DS incentives and those of areas manufacturing Galaxy phones, TVs, and appliances.
Samsung’s paradox: Memory hits records while Foundry needs talent
This conflict occurs during one of Samsung’s strongest financial periods in history. The company posted a consolidated operating profit of 57.2 trillion won in the first quarter of 2026. Device Solutions contributed 53.7 trillion, about 94% of the total, mainly due to price hikes and demand for AI infrastructure memory chips.
For the second quarter, Samsung forecasted a consolidated operating profit of approximately 89.4 trillion won and revenues of 171 trillion. These are preliminary figures, and the company must still publish detailed breakdowns by division.
The issue is that not all DS businesses are participating equally in this cycle. Memory sells DRAM, NAND, HBM, and storage units at rapidly increasing prices. Foundry manufactures chips designed by third parties and competes with Taiwan Semiconductor Manufacturing Company (TSMC).
In the first quarter of 2026, Samsung Foundry billed just over $3.2 billion and reduced its global share to 6.5%, according to TrendForce. TSMC held 72%, while SMIC was third at 5.1%.
| Foundry | Global share in Q1 2026 |
|---|---|
| TSMC | 72.0 % |
| Samsung Foundry | 6.5 % |
| SMIC | 5.1 % |
Samsung remains the second-largest foundry worldwide, but the gap with TSMC makes retaining engineers particularly critical. Improving manufacturing yields, adapting processes for each client, and increasing plant utilization require specialized teams that accumulate expertise over years.
The company aims to ramp up production of its second-generation 2-nanometer process in the second half of 2026, expand high-performance computing customers, and continue developing its future 1.4-nanometer process. Samsung also seeks to combine manufacturing, memory, and advanced packaging to differentiate itself from competitors.
A professional exodus from Foundry or System LSI could hinder these goals, but the survey does not yet indicate a mass fuga. The semiconductor labor market also cannot support immediate moves to any company: senior roles are geographically concentrated, often subject to confidentiality agreements, require specialized experience, and involve restrictions on trade secrets.
An internal risk is evident: the company needs its foundry business to close the gap with TSMC, while its incentive system strongly rewards immediate profits from memory. While financially coherent, this approach threatens to demotivate divisions crucial for future growth beyond current DRAM and NAND cycles.
Frequently Asked Questions
Is it true that 81.5% of Samsung Foundry staff will resign?
No. The percentage reflects employees who reported a high or very high intention to change jobs within two years. It does not equate to confirmed resignations.
How many workers participated in the survey?
8,297 employees from Samsung’s semiconductor division responded. The published data does not specify response numbers per unit.
Why might memory employees receive larger bonuses?
The new system links part of the incentive to each area’s profits. Memory business is currently posting record results due to high demand and rising chip prices for servers and AI.
Why is Samsung Foundry important to the company?
Foundry fabricates chips designed by other companies and represents Samsung’s largest alternative to TSMC. Samsung needs to improve its competitiveness in advanced 2-nanometer and 1.4-nanometer processes to attract clients in AI, mobile, automotive, and high-performance computing sectors.
