Samsung Electro-Mechanics has decided to pay an excess profit incentive (OPI) worth 5% to 6% of annual salary based on last year’s results, effectively wrapping up performance-bonus decisions across major Samsung electronics affiliates, including Samsung Electronics.
According to the industry on Tuesday, Samsung Electro-Mechanics announced its 2025 OPI payout rates in an internal notice. The Component Business Division, which leads the multilayer ceramic capacitor (MLCC) business, will receive 6%, as will the Optical Solution Business Division. The Package Solution Business Division will receive 5%. The payout is scheduled for Thursday.
Earlier Tuesday, Samsung Display also finalized its OPI. It set the rate at 36% — the top end of the 32% to 36% range forecast late last month — and will apply it across all divisions.
OPI is paid once a year when a business unit exceeds targets set at the start of the year. It can be worth up to 50% of an employee’s annual salary, within a cap of 20% of excess profit. Along with the target achievement incentive (TAI), it is one of Samsung Electronics’ main bonus programs.
Samsung Electronics was the first to set its OPI rates, doing so on Jan. 16. In its Device Solutions (DS) division, which oversees semiconductors, most units — including memory, System LSI and foundry — were set at 47% of annual salary. The company said sales rose sharply across memory products last year, including high-bandwidth memory (HBM) and commodity DRAM, helping results recover from the second half.
In the fourth quarter, Samsung Electronics posted quarterly operating profit of 20 trillion won for the first time since its founding. By contrast, OPI for 2024 was set at 14% amid weak semiconductor performance, and it was set at 0% in 2023.
The Device Experience (DX) division, which leads the mobile business, was set at 50%, reflecting strong sales of the Galaxy S25 series and the Galaxy Z Fold/Flip7 last year.
OPI for the Visual Display (VD) unit, which oversees TVs, and for the Digital Appliances (DA), network and medical device units was set at 12%.
Management support, Harman, the mutual growth cooperation center and the global customer service center will receive 39%, while the production technology research institute will receive 36%.
* This article has been translated by AI.
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