Semiconductor Supercycle Sparks 'Bonus War'... Samsung, SK hynix Begin Overhauling Compensation Systems

[Financial News] As the semiconductor supercycle gains momentum, major companies are moving to revamp their compensation systems to prevent talent outflow. SK hynix, having already removed the cap on Profit Sharing (PS), is now considering allocating a portion of performance bonuses to Retirement Pension plans. Samsung Electronics Co., Ltd. is also expected to make the removal of bonus caps and system reforms a key agenda item in this year’s wage collective bargaining. These steps are seen as proactive measures to retain core talent and enhance compensation competitiveness amid the semiconductor boom.

According to industry sources on the 16th, SK hynix is internally discussing a plan to allocate part of its management performance bonuses to a Defined Contribution Retirement Pension (DC). The aim is to increase compensation flexibility by allowing employees to choose between cash or pension payments. The company plans to gather feedback through labor-management consultations and a vote among all employees.
Previously, in September, SK hynix’s labor and management agreed to abolish the PS cap (previously set at 1,000% of base salary) and to allocate 10% of annual operating profit entirely to performance bonuses. A representative from SK hynix stated, "We are reviewing various options to broaden the choices for management performance bonuses."
On the same day, Samsung Electronics Co., Ltd. began its first main round of '2026 wage negotiations' at its Giheung campus in Gyeonggi Province. The main issues in the talks are increasing transparency in Overall Performance Incentive (OPI) criteria and lifting bonus caps. During the initial meeting on the 11th, the joint bargaining team reportedly submitted a proposal for these system improvements to management.
In these negotiations, the Samsung Electronics Co., Ltd. labor union is demanding greater transparency in the OPI system, removal of bonus caps, and a 7% increase in base salary. Notably, the OPI is currently limited to a maximum of 50% of an individual’s annual salary, and there is a strong push to abolish this restriction.
An industry insider analyzed, "With the semiconductor market entering the early stages of a supercycle driven by increased demand for Artificial Intelligence (AI), both companies are aiming to prevent talent outflow and boost morale by overhauling their bonus systems."

Thanks to the global semiconductor boom, the industry is expected to post record-breaking results in the second half of this year. According to securities analysts, Samsung Electronics Co., Ltd.’s fourth-quarter consensus (average estimate) stands at 87.738 trillion won in sales and 15.3495 trillion won in operating profit. The recovery of the High Bandwidth Memory (HBM) business and rising general memory prices are cited as key drivers. With annual operating profit projected to reach 38.828 trillion won, there is speculation that the company could rejoin the '40 trillion won club' for the first time in three years since 2022.
SK hynix is also expected to post record-high results in the fourth quarter. Nomura Securities has analyzed that SK hynix’s annual operating profit could reach 9.9 trillion won, and there is speculation that the combined operating profit of both companies could surpass 20 trillion won.
As the semiconductor market enters the early stages of a supercycle fueled by growing AI demand, the global industry is seeing intensified competition for talent. Major companies are rapidly introducing internal compensation measures such as bonuses to retain key personnel and stabilize their organizations.
In fact, TSMC, the world’s largest foundry, reportedly paid an average bonus of 85 million won per employee last year. According to local Taiwanese media, engineers with more than six years of experience at the company are estimated to have received a total annual package, including salary and bonuses, exceeding 5 million New Taiwan dollars (about 235 million won).
moving@fnnews.com Reporter Lee Dong-hyuk, Lim Soo-bin Reporter