It was learned from Korean media on May 26 that Samsung Electronics is pursuing a plan to transfer hundreds of employees of Samsung Display, which is exiting the LCD business, into the Semiconductor Business (DS) packaging business unit.

This is the third part of the workforce efficiency plan, following two handovers of Samsung Display employees last year. It is understood that this change is advancing because Samsung Display has increased idle manpower due to the withdrawal of the liquid crystal business, and Samsung Electronics, which has difficulty in supply and demand of semiconductor manpower, is in line with Samsung Display's need to transfer idle personnel.

According to Korean media The Elec, citing people familiar with the matter, Samsung’s job transfer plan is mainly aimed at Samsung Display employees under the age of 37. The transfer plan is expected to be completed in the second half of this year.

Samsung Display originally planned to end the LCD business by the end of 2020, but this plan was later delayed due to supply shortages, and some production lines are still operating.

The large-scale LCD production line, the L8 line, is currently the only LCD production line still in operation, but it will also end production at the end of next month. It is understood that only the large LCD production line L8 production line currently has more than 1,000 idle manpower.

Therefore, Samsung Display transferred the staff of the LCD business unit to Samsung Electronics twice in the first half and the second half of 2021; the transfer arrangement promoted this time is the third manpower readjustment. The reason for the adjustment is also obvious. The former is withdrawing from the liquid crystal display (LCD) business and transferring its surplus manpower to the chip packaging department of Samsung Electronics, which requires semiconductor manpower.

According to the report, it has not yet been confirmed whether the transfer targets are employees of Samsung Display's large LCD business unit or all employees of Samsung Display.

The industry believes that the "stakes" between Samsung Electronics and Samsung Display are properly aligned in the manpower transfer arrangement between the two companies. In particular, from the standpoint of Samsung Electronics, it may be possible to secure skilled employees in the LCD business unit of Samsung Display when there is an urgent need to secure semiconductor talent.

In this regard, Samsung Electronics announced a large-scale investment plan on the 24th, which is to invest 450 trillion won in semiconductors, biotechnology, artificial intelligence (AI) and 6G in the next five years. About 60-70% of them will be used to maintain the super gap in storage semiconductors and strengthen the competitiveness of system semiconductors. To this end, Samsung Electronics said that it will hire 80,000 new people within five years, most of which will be talents in the semiconductor field.

Industry officials said that with the rapid increase in the demand for manpower in the domestic semiconductor industry in South Korea, competition among companies in terms of recruitment and talent is fierce. From Samsung Electronics' point of view, this is something w