Korean chip industry on a massive hiring scheme, dismissing outlook cynicism

South Korea’s two memory giants Samsung Electronics Co. and SK hynix as well as smaller chipmakers are on an aggressive hiring campaign, dismissing concerns for a faster downturn in the memory cycle.

According to the half-year earnings report on Monday, Samsung Electronics’ device solutions (DS) division responsible for chip segment had 61,522 on its payroll as of the end of June, up 10.1 percent or 5,644 from a year-ago period. Home appliances business and mobile devices divisions on the other hand cut payroll by 1.8 percent (233) and 2.6 percent (711), respectively, during the same period.

Samsung Electronics’ semiconductor business has been expanding in recent years. The number of employed was tallied at 50,857 as of end of June 2018 and 53,904 as of the end of June 2019 and jumped above 60,000 in the first half of this year.

The world’s dominant memory supplier has stayed expansionary in hiring and investment regardless of up-downs in business cycle.

Additional investment in its second memory plant in Pyeongtaek (P2) and second Xian factory will be completed soon, and the construction of the third Pyeongtaek plant (P3) is expected to finish by the second half of next year at total cost of 40-50 trillion won ($34.2-42.7 billion).

Samsung Electronics is planning to build a next-generation foundry with $17 billion investment in the United States after deciding on the location.

Hiring will continue in the second half with the opening of its year-round recruitment for new employees next month. To enhance its brain power in semiconductor, additional job fair titled Tech & Career Forum will be held online through the video conference platform Zoom from Wednesday, with participants of 20 senior executives in each of the business unit including Jung Eun-seung, president and chief technology officer of DS division.

Another memory giant SK Hynix is starting annual recruitment this month in three-digit numbers in 20 sectors ranging from designing, circuit, R&D process, and manufacturing technology, to production management and product engineering. The company reported a total of 29,047 on its payroll as of late April, adding 548 from a year earlier.

Korean fabless system semiconductor designer LX Semicon has started its annual hiring process on August 17 to recruit around 60 new employees. Its yearly payroll addition is estimated to reach 300 this year.

ASML Korea, the Korean unit of Dutch multinational company ASML Holding specializing in development and manufacturing of photolithography systems, is also preparing to recruit 100 engineers in the second half.

The Korean chip industry is expanding manpower amid mixed outlook about the ongoing up cycle.

Foreign brokerages including Morgan Stanley and CLSA and market research agencies such as TrendForce have projected memory chip market to go down the hill from the second half of this year. But the World Semiconductor Trade Statistics (WSTS), a semiconductor market data provider, and SK hynix CEO reiterated their sanguine outlook. WSTS even revised up its outlook on semiconductor market growth for this year and the next.

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