The semiconductor talent war has entered a new phase. In the past, moves were mainly driven by higher pay. Recently, exits from organisations prompted by bonus disputes and checks between companies have combined to block job changes by experienced hires, while large-scale graduate recruitment fills the gap.

The trigger is dissatisfaction over treatment. At major semiconductor companies including Samsung Electronics, disputes over how bonuses are calculated and union strikes have continued, raising the willingness of design staff disappointed with compensation to switch jobs. As they enter the market, SK hynix, overseas fabless companies and semiconductor startups that have attracted investment are joining the race to absorb talent. In particular, SK hynix has been pulling design staff from Samsung Electronics across memory, System LSI and foundry operations, raising concern at Samsung over a talent outflow, it is reported.

Hiring practices have also changed. SK hynix recently posted openings for design staff in the hundreds, and according to an office-worker community, some applicants who applied as experienced hires at Samsung Electronics were notified of rejection early even though the posting deadline had not passed. The industry is taking this as a signal to apply via the graduate track because it is not possible to apply to both experienced and graduate hiring. The view is that by absorbing so-called "used-new" hires with short experience through graduate recruitment, the company can step back from controversy over poaching staff from rivals or scrutiny by regulators.

This trend has led to unexpected checks. In the industry, it is being discussed that Samsung Electronics' HR team asked SK hynix to refrain from hiring experienced staff and that government-level checks were added under the banner of protecting national core technologies. As a result, analysis is emerging that a direct path for experienced hires moving from Samsung to SK hynix has narrowed for the time being.

The battle for talent is not confined within borders. Intel recently hired Lee Seok-hee (이석희), former president of SK On and former CEO of SK hynix, as an executive vice president for its foundry unit. As executive vice president, he oversees advanced packaging, system integration, and back-end technology development and manufacturing at Intel Foundry, and reports directly to Intel CEO Lip-Bu Tan. A figure who led domestic semiconductor and battery businesses after serving at SK hynix and SK On has moved to a key post at a global rival.

The underlying backdrop to the talent war is a chronic shortage of workers. According to the government and the Korea Semiconductor Industry Association, the workforce needed for South Korea's semiconductor industry is expected to rise from 177,000 in 2021 to 304,000 in 2031. That implies an additional 127,000 people are needed. But annual supply is only about 5,000, and if the trend continues, an estimated 54,000 people, or about 18 percent of the required workforce, will be lacking in 2031. The time required to train workers is also a burden. Even basic manufacturing staff need at least 1 year of training, and research and development staff require an investment of more than 10 years. The more trained talent leaves, the harder it is to fill the gap.

◆"The outflow of highly skilled workers leads to a loss of technological competitiveness"...growing risks

Another problem is that the pipeline is blocked at the entry point. The government is trying to secure workers through contract-based departments and specialised universities, but a clear trend has emerged of students avoiding enrolment. According to Jongro Academy, in the 2026 regular admissions cycle, Yonsei University's Department of System Semiconductor Engineering, linked to hiring by Samsung Electronics, recruited 32 students but 62 who were accepted still gave up enrolment. That was up 47.6 percent from a year earlier. Korea University's Department of Semiconductor Engineering, which guarantees hiring by SK hynix, also saw 37 give up enrolment for 15 places, up 76.2 percent from the previous year. Despite guaranteed jobs, test-takers have moved to Seoul National University or medical-related tracks. Uncertainty is cited as a backdrop, including the possibility that the current supercycle could be over by the time they graduate in 4 years.

Factors driving job changes have also shifted. In the past, the main motive was a rise in base pay. Recently, transparency in bonus systems and satisfaction with organisational culture have emerged as key reasons. Analysis says that as compensation gaps with global big tech such as Nvidia and TSMC and differences in bonus payout rates among domestic companies become visible, key engineers' willingness to leave has increased.

The concentration of staff goes beyond competition between companies. That is because the most severe shortage is in next-generation semiconductor design, namely fabless and core memory IP roles. Concentration of design staff in certain large companies, and the resulting outflows, is directly tied to the risk of leakage of national core technologies under the Act on Special Measures for Strengthening and Protecting the Competitiveness of National High-Tech Strategic Industries. This is also cited as the basis for the government and personnel authorities moving to put the brakes on job moves by experienced hires between large companies.

Ultimately, the key is treatment and training. As design staff are a core resource in competition over advanced processes, concerns are also being raised that if blocking moves by experienced hires drags on, the cost of securing workers will rise and imbalances in talent by company could deepen. Critics point to the need to address dissatisfaction with bonus systems and treatment, while pursuing national-level workforce training and measures to prevent talent outflows. Otherwise, tension over semiconductor talent is likely to continue for the time being. An industry official said, "Highly skilled workers are already a seller's market," adding, "We see the bigger risk as the fact that talent outflows increasingly lead to a loss of technological competitiveness."