Samsung expects semiconductor chip operating profit to halve to 13.1 trillion won in 2023

According to The Elec, Samsung expects its annual operating profit from semiconductor sales to reach approximately 13.1 trillion won (approximately 71.919 billion yuan) in 2023. Samsung shared this data with employees in a note that explains how they will perform in 2022 and affects the amount of expected bonuses paid in January.

Samsung pays performance bonuses to employees at the beginning of each year. The amount is paid out of profits that exceed each business unit's targets for the previous year. Up to 20% of surplus profits are used as bonuses, and each employee can receive up to 50% of their annual salary as an incentive.

Samsung shared the expected annual profits for each business unit, and also shared the target profits and revenue for each business in 2023. This covers the device solutions segment of the memory, logic and foundry business units, with an expected annual operating profit of 13.1 trillion won.

It is reported that if this goal is achieved, employees are expected to receive bonuses equivalent to 5% to 11% of their 2023 annual salary, which will be paid in January 2024.

To receive the maximum 50% bonus, they must reach an annual operating profit of 28 trillion won (approximately 153.72 billion yuan). Given the current downturn in the global memory chip market, achieving this goal this year is almost impossible.

If Samsung's expectations are realized, its semiconductor operating profit in 2023 will be about half of its operating profit in 2022. Analysts expect Samsung's semiconductor operating profit in 2022 to be between 25 trillion won (approximately 137.25 billion yuan) and Between 26 trillion won (approximately 142.74 billion yuan).