Samsung Electronics has approved substantial bonuses totaling $26.6 billion for its DS chip division employees, with an average of $339,000 per employee. This decision has sparked dissatisfaction within the company, particularly among employees of the DX division, which oversees products like smartphones and TVs. While DS has thrived due to rising memory chip prices driven by AI demand, DX has not seen similar profitability, leading to no comparable bonuses for its employees.
The discontent is palpable on internal forums, with some employees expressing frustration over the perceived unfair distribution of bonuses. Criticism has also been directed at CEO and DX head TM Roh, amidst concerns that the benefits of Samsung’s record profits are not reaching DX employees. The situation is exacerbated by the fact that DX doesn’t receive preferential pricing for components from DS, affecting its revenue negatively.
Some DX employees argue for the freedom to source components externally, citing the example of the upcoming Galaxy S26 series using Micron memory chips. This approach, however, challenges Samsung’s longstanding business model of vertical integration, which has historically balanced the fortunes of both divisions.
The current market conditions present a unique opportunity for DS, benefiting from high demand and prices. However, DX employees, who supported the company during DS’s lean years, feel sidelined. Samsung’s management now faces the challenge of maintaining morale across the organization, especially in a division responsible for products used by billions worldwide.
