Samsung Faces Talent Drain as Engineers Swap Sides

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Oct 22, 2024

Recently, SK Hynix advertised for three etching engineer positions, attracting applications from approximately 200 current Samsung engineers. This high level of interest indicates that most eligible engineers from Samsung's wafer production line have applied. This movement raises significant concerns for Samsung's semiconductor business as a similar trend has been observed at the Korea Electronics Technology Institute (KETI), which recently hired eight new employees—all from Samsung.

Samsung, facing unexpected third-quarter performance results, has publicly apologized, intensifying market worries about its semiconductor business. The talent crisis is now evident as increasing numbers of Samsung engineers are joining competitors or government-supported research bodies.

SK Hynix's "Junior Talent" program, aimed at recruiting engineers with less than five years of experience, initially targeted those with up to three years of experience but expanded to include individuals with up to five years, counting master's or doctoral research as job experience. This change led to a surge in applications from Samsung engineers.

Last month, during a meeting between Samsung executives and employees, concerns were raised regarding talent retention. Samsung's memory business chief Lee Jung-bae addressed the issue by urging employees to work hard and encourage those considering leaving to stay.

Former Samsung employees revealed that while Samsung previously offered the highest salaries in the industry, current compensation is only slightly higher than competitors when bonuses are included.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.