South Korean chip companies increasing wages to address talent shortage

Major South Korean semiconductor companies are raising wages to address a shortage of skilled professionals in the high-tech industry, industry watchers said, an effort supported by government policies aimed at training young experts to strengthen the country’s growth drivers.

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The industry-wide move comes as major South Korean semiconductor manufacturers are revising their human resource policies to promote early education and training of young, talented undergraduate students to reduce the need to train junior employees who lack experience and knowledge in chip manufacturing.

Although Samsung Electronics has not yet determined the rate of salary increase this year, it is expected to maintain the level of 7.5% last year. Its main rival, SK Hynix, rose 8 percent last year, raising entry-level wages to 50.4 million won ($40,992). This is higher than the 48 million won proposed by Samsung Electronics and domestic foundry firm DB HiTek.

In order to get outstanding college students to sign up for Samsung and SK subsidiaries, some local universities are setting up study programs, which is in line with increasing incentives.

Samsung Electronics has jointly offered courses with Yonsei University, Sungkyunkwan University, Korea Institute of Science and Technology (KAIST), and Pohang University of Science and Technology (POSTECH). SK Hynix has offered courses at Korea University, and this year Sogang University and Hanyang University will also offer courses.

In the courses offered by these seven universities, experts in the Korean logic chip industry will be trained. In addition, in order to keep Korea as a world leader in the field of memory chips, a program to train students will be carried out.

According to the Korea Institute of Technology (KIAT), the labor gap in South Korea’s semiconductor industry has increased from 1,332 in 2015 to 1,621 in 2020.

(via)