Samsung expects chip profits to be halved in 2023 to about 13.1 trillion won

According to TheElec, Samsung expects its annual operating profit from semiconductor sales to be about 13.1 trillion won in 2023.

The figure was shared with employees in a note sent to them on Wednesday, describing the amount of bonuses they expect to be paid in January based on performance in 2022.

Samsung pays employees performance bonuses at the beginning of each year. The amount is paid out of profits exceeding each business unit's previous year's target. A maximum of 20% of the surplus will be used as a bonus award, and each employee can receive a maximum of 50% of the annual salary as an award.

Samsung shared each business unit's expected annual profit because it also needs to share each business' 2023 target profit and revenue.

The device solutions segment, which includes the memory, logic and foundry business units, is expected to post an annual operating profit of 13.1 trillion won.

If this target is met, employees are expected to receive bonuses in January 2024 equivalent to 5% to 11% of their 2023 annual salary.

To get the top 50 percent bonus, they would have to hit an annual operating profit of 28 trillion won: almost impossible next year given the current slump in the global memory chip market.

If Samsung's own forecasts are met, its operating profit next year will be about half of its annual operating profit in 2022, which analysts expect between 25 trillion and 26 trillion won.