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Asia Labor Samsung is desperate to compete on chips. Workers say it comes at a cost.
Labor

Samsung is desperate to compete on chips. Workers say it comes at a cost.

Scarred by long hours, low pay, and a hostile work culture, many chip workers are leaving for competitors, including American companies.

Rest of World/Getty Images
Rest of World/Getty Images
  • Once a global leader, Samsung Electronics is losing in the fierce semiconductor race to dominate AI supplies.
  • It’s also losing engineers, leaving the remaining staff to work long, intense shifts to compensate for vacancies.
  • Engineers say they are required to falsify data and defects are slipping through, affecting chip quality.

Around midnight at Samsung Electronics’ semiconductor offices outside Seoul, Han Ki-bak, a chip design engineer, saw a colleague collapse after working months of grueling late nights. Stunned, Han couldn’t move. 

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“Because I had pulled so many all-nighters, I was out of my mind. Instead of rushing to help her, I just sat in my chair, wondering, ‘What should I do?’” he recalled about the incident in 2020, speaking to Rest of World.

As paramedics arrived, Han looked on in a daze.

Years later, Han, the former head of a Samsung workers’ union, continues to pull all-nighters during crunch periods. Although chips have gotten more technically advanced over his 14 years at the company amid an accelerating global chip race, Han’s engineering team has grown leaner. 

“Each engineer used to be assigned a single [part of a chip’s design], but now juggles two or three,” he said. “At this rate, I feel like I’m going to die.” 

Scarred by long hours, heavy workloads, and lower bonuses compared to rivals, many Samsung engineers are leaving for South Korean chipmaker SK Hynix, 10 current and former engineers told Rest of World. Some are moving to Micron and Intel in the U.S., as well as Chinese competitors such as CXMT and YMTC. Burnout is deepening across short-staffed teams already stretched thin, they said. All workers except Han requested they be identified by pseudonyms because they feared retaliation from the company.

“The general vibe among engineers is that we’ll work here for a short while before leaving for another company,” Han said, referring to his colleagues’ outlook in the past year. 

Semiconductors underpin all modern electronics from LEDs to Teslas, and the kind that Samsung specializes in — high-bandwidth memory chips — are crucial for powering Nvidia’s cutting-edge hardware used to train artificial intelligence models. Samsung reigned as the world’s top memory chipmaker for more than three decades until this year, when it was dethroned by SK Hynix, another South Korean semiconductor titan. 

Samsung’s foundry business, which makes chips for clients, is also struggling to compete with Taiwan’s TSMC, which controls more than two-thirds of the foundry market. Samsung’s foundry and chip design divisions lost 3.18 trillion won ($2.4 billion) in 2023.

“Samsung is facing a do-or-die crisis,” Lee Jae-yong, Samsung’s chairperson, told executives in March, promising reform. The company has planned internal audits of its semiconductor departments to improve competitiveness. 

Samsung’s leaders have tied the company’s crisis to a non-communicative and hierarchical work culture. “The culture of hiding or avoiding problems to get through the moment, and reporting unrealistic plans based solely on hopeful expectations, has spread and exacerbated our problems,” Jun Young-hyun, the semiconductor business head, wrote in a staff memo last August.

A spokesperson from Samsung told Rest of World the company is “focused on reinforcing its technological competitiveness and fostering a healthy workplace culture.”

All the talented engineers are leaving. That’s how we’re falling behind.

Samsung is South Korea’s most valuable company, with a market capitalization of about $271 billion on June 10, accounting for 16% of the value of the country’s stock exchange. Founded in 1938 as a shop selling vegetables and dried fish, Samsung has since grown into a global semiconductor powerhouse fueled by an intense hustle culture

Some 70,000 employees work in Samsung’s semiconductor division, spread across rows of glass-walled office buildings and manufacturing plants. These are woven through landscaped gardens in Hwaseong, Giheung, and other industrial cities outside Seoul that house some of South Korea’s biggest technology companies.

A modern industrial building with a large facade featuring colorful geometric shapes in red, blue, and yellow, set against a clear blue sky. The foreground includes a road with traffic markings and several parked vehicles, while green trees line the area near the building.
Samsung

Not that long ago, Samsung was considered a dream job and its workers were referred to as “Samsung men” — members of an elite corporate class who wore their Samsung affiliation as a badge of honor. 

“We used to say we have blue blood flowing through our veins. That’s not the case anymore,” Jin, an equipment engineer who has worked at Samsung for a decade, told Rest of World, nodding to Samsung’s blue logo

Leaving for a rival was once taboo, but now, “openly applying to SK Hynix has become our culture,” Cho, a process engineer, told Rest of World

Young engineers at Samsung are scouring workplace review websites like Blind, and flooding group chats on the instant messaging platform Kakao Talk with job application tips, engineers said. 

Senior engineers are leaving for tech giants abroad, including Micron, Intel, Apple, and Google in the U.S., where salaries are higher and perks are more lavish, they said. That’s despite a broader shift in tech, even in Silicon Valley, where longer work hours and more unstable jobs are becoming common.

In 2024, Samsung fell to sixth place in a South Korean employer ranking survey, from second the previous year. 

Cho said he was exhausted after working excessive weekend shifts for many months to cover for four vacancies on his team. The 29-year-old is now workshopping his cover letter for SK Hynix with his coworkers. Even his manager has encouraged his team to jump ship, Cho said. “‘Why aren’t you applying to SK Hynix?’” he recalled the manager saying. “‘Get out of here fast!’”

“All the talented engineers are leaving,” he said. “That’s how we’re falling behind.” 

Engineers are asked to log overtime as “nonworking” hours so that Samsung doesn’t violate the government’s 52-hour workweek limit, Han and five others said. “I work many hours for free,” Han said.

A spokesperson for the Ministry of Employment and Labor told Rest of World the ministry is aware of similar alleged violations at another Samsung division. But they have not received any complaints from Samsung’s chip workers, he said. 

When an executive shifts blame, it rolls down to the managers, then onto employees. As a result, false reporting became commonplace.

Samsung has grown into a bureaucracy that is slow to innovate, Kim Yong-jin, a professor of management at Sogang University, told Rest of World. Even as SK Hynix heavily invested in developing the next generation of memory chips, Samsung held back thinking the high development costs were not justified by the niche market. Its foundry business also struggled to retain clients. Then, the AI boom hit. 

Following a steep drop in revenue in 2023, Samsung paid no bonuses to employees. Employee bonuses last year were 72% lower than payouts during the pandemic’s boom years, engineers said. 

“It’s like being slashed to a third of your salary,” Cho said. Once eager to stay late and push through extra work, he now clocks out promptly at the end of his shift. “Even if we work hard, we’re not getting paid any bonuses,” he said. “The work culture has changed.”

The Samsung spokesperson told Rest of World the company implements “a clear performance-based compensation system to support sustainable growth.”

The company has opted not to backfill positions, leaving staff scrambling, multiple engineers told Rest of World. “Recognizing that they’re in a precarious position, Samsung has temporarily stalled hiring,” said Park Jun-young, a semiconductor researcher at the Institute of Industrial Anthropology, who worked at Samsung as an engineer and recruiter for a decade.

In the past year, process engineer Kim has watched 12 out of about 70 engineers on his team leave. Still, no new hires were made until last month, when more engineers quit his team in frustration over chronic understaffing, he said. “Management knows we’re struggling to work because we’re understaffed, but doesn’t budge to backfill roles until a crisis breaks out,” Kim told Rest of World

Short-staffed teams are taking on dangerous responsibilities. An equipment engineer on the shop floor told Rest of World he works overnight shifts alone, violating safety protocols requiring two engineers per shift, while lifting heavy metal gratings and monitoring robots. He sprints between rows of fabrication equipment through the night to perform checks. “That’s when accidents happen, and defects start showing up in products,” he said. 

The spokesperson from Samsung told Rest of World the company is committed to providing “a safe working environment that strictly adheres to local rules and regulations.”

Whenever we have a problem, we wipe it out military-style, instead of finding a proper solution. It’s called the ‘Samsung way’.

Samsung’s organizational culture soured in 2018, during the tenure of Kim Ki-nam, then-head of Samsung Device Solutions and currently a senior adviser, said semiconductor anthropologist Park. Under Kim’s micromanaging leadership, a blame-shifting hierarchy hardened into the norm, he said. 

“When an executive shifts blame, it rolls down to the managers, then onto employees. As a result, false reporting became commonplace,” Park said.

Kim Ki-nam did not respond to Rest of World’s request for comment. 

Engineers today describe Samsung’s culture as “militaristic” and “hierarchical,” and say they are at the mercy of their managers. The managers, in turn, face rigid annual performance reviews based on granular metrics such as yield rates, production costs, and defects. 

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The managers are often longtime bureaucrats promoted for their ability to process paperwork rather than their technical competence, two engineers said. They focus on short-term projects that can meet annual performance goals, three engineers said. Managers are also given impractical cost-cutting targets, which they pass on to their employees, five engineers said. 

The rigid performance metrics “fail to give managers room to reflect, recalibrate, and pursue long-term trial and error to build something new,” said Kim, the professor of management. Instead, they’re pushed to exaggerate their achievements, conceal mistakes and accidents, and pitch flashy but unworkable engineering plans, he said.

Four engineers told Rest of World they are routinely pressured by managers to fabricate or distort data to help meet these targets. Three of them said they witnessed engineers and managers inflate yield rates, which refers to the percentage of non-defective chips produced from a wafer. They also underreported defects, they said. 

“Go rewrite your report,” Im, a 28-year-old equipment engineer, recalled his manager saying after he submitted a report with bleak but genuine data. “Then we go massage our data,” he said.

A former design engineer told Rest of World his manager implemented dysfunctional automation scripts, which he then reported as improving a chip design. Han, the former union head, recalled a manager pushing through unworkable designs over their team’s objections.

“Defects slip through quietly,” Im said.

Pushing back against hierarchy can result in poor performance reviews, some engineers told Rest of World. Others said the reviews are objective and metrics-based. “Performance reviews are our lifeline, pressure point, and carrot,” Jin said. 

The Samsung spokesperson told Rest of World the company “ensures engagement with [its] employees is based on fairness, transparency, and flexibility.” 

The organizational culture at Samsung has now earned a dubious descriptor — the “Samsung way,” which refers to a habit of obfuscating data and concealing problems, Jin said.  

“Whenever we have a problem, we wipe it out military-style, instead of finding a proper solution,” he said. “It’s called the Samsung way.”

Reflecting on the troubles at work, equipment engineer Im said the company’s top-down culture has backfired on engineers’ performance and morale. 

“Maybe that’s what gradually cost Samsung its competitive edge,” he said.

Labor

Robot chefs take over at South Korea’s highway restaurants, to mixed reviews

Automation is posed as a labor shortage solution, but workers say robots are making their jobs — and food — worse.

Photography by Jun Michael Park for Rest of World
Photography by Jun Michael Park for Rest of World
  • Robot chefs are replacing humans at some South Korean highway restaurants.
  • Tech companies say robots can help solve labor shortage in an aging nation.
  • Workers say their roles have been downgraded from chefs to cleaning staff.

On sweltering summer days, chef Park Jeong-eun would cook makguksu, an earthy Korean dish made with buckwheat noodles steeped in a tangy, ice-cold broth, topped with spicy gochujang paste. Truck drivers would come from faraway places to the Munmak rest stop, on the highway in the mountainous Gangwon-do province in South Korea, to eat her food.

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That was until February 2024, when three robot chefs took over the kitchen at Munmak. The restaurant’s menu has since changed, away from local delicacies like makguksu and slow-cooked beef stews to easily automatable dishes such as ramen, udon, and varieties of Korean stews. The robots speed through 150 meals every hour, nearly double what Park can make by hand. 

A woman wearing a black jacket and a face mask works in a modern kitchen filled with stainless steel equipment, including a robotic arm, a stack of plates, and a conveyor belt.

When longtime patrons learn their beloved menu items are no more, they gasp and walk out the door, she recalled to Rest of World

“Our customers say the dishes we used to cook tasted much better than what the robots serve now,” Park, 58, said. “Even though the robots have lightened my workload, I’ve lost my sense of pride in our food.”

Park now finds refuge scrubbing dishes in the back of the kitchen, away from the counter, where customers barrage her with harsh complaints about the food. Sometimes, they return their ramen bowls untouched in protest, she said.

The robot chefs at Munmak are part of South Korea’s push toward greater automation in the service sector. The nation already leads the world in industrial robots, with more than 1,000 machines for every 10,000 workers in 2023, nearly three times the global average. 

South Korean tech companies are now deploying collaborative robots, or co-bots, which work alongside humans, in hotels, elder care, schools, and restaurants. The sector is projected to reach $367 million in value this year, from $254 million in 2024, according to the Korea Institute of Science and Technology Information. 

The bots are supposed to solve a looming labor shortage in the rapidly aging nation, where workers aged 60 and above make up nearly a quarter of the workforce. The government plans to increase the number of bot workers to 1 million by 2030 as a longterm solution. 

Munmak, too, faced a severe work shortage, and bot chefs help keep the kitchen staffed 24/7, Ham Jin-kyu, president of the Korea Expressway Corporation, a public institution that manages the country’s rest stops, said during Munmak’s grand reopening last year.

“For tasks too demanding for humans to perform 24 hours a day, we need to use robots in a limited capacity, in this transformative era of the Fourth Industrial Revolution,” Ham said, referring to the current wave of automation across industries.

Human chefs who work alongside the robot chefs told Rest of World they are able to work at a more relaxed pace, especially during peak hours, because the machines grind away tirelessly. But they also spoke of layoffs and a loss of dignity due to automation. 

Some of the kitchen staff even quit because they couldn’t get used to the menial nature of working alongside the robots.

Munmak sits on the Yeongdong highway, conveniently located as a stop for freight trucks, charter buses, and cars dashing to the countryside.

Inside the “smart” rest stop, machines whir quietly. A truckers’ lounge offers an electric massage bed. There’s a self-service convenience store, and Cafe Hubot, where a robot barista brews coffee behind a plexiglass counter. And then there’s the automated restaurant.

When a customer orders a bowl of dumpling ramen at a kiosk, a robot activates. A steel nozzle swirls boiling water and spicy broth paste into a pot. Dried noodles drop from a dispenser. Cradling heat and spice, the pot glides onto a burner. An overhead chute sprinkles dried vegetable flakes. The ramen simmers.

Finally, a kitchen worker stirs the noodles and places a few dumplings on top. A robotic arm lifts the pot and pours the ramen into a bowl, which travels down a conveyor belt to the counter. 

“Customer number 477, your food is ready,” an automated voice announces to a catchy tune.

The robots were developed by Chef Robot Tech, a startup based in Namyangju, a robotics hub outside Seoul. The company reprogrammed the RB5 co-bot, originally built by a subsidiary of Samsung Electronics, to mimic human cooking motions. They used training data created from dozens of trial runs by a team of engineers and chefs. Their bots can cook ramen, udon, or stew.

“When there’s a sudden rush of customers flowing in, the robots can produce consistent, standardized dishes in a short amount of time,” Im Sang-jun, the chief executive of Chef Robot Tech, told Rest of World.

Workers at Munmak are now protected from toxic fumes, painful burns, and arthritic injuries, Kim Hye-rim, a deputy director of the service innovation team at Korea Expressway Corporation, told Rest of World. Customers can order from the restaurant’s full menu round the clock, and the volume of sales has increased, she said.

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“[But] some customers seem to miss the touch of a human hand in the food,” she added.

The corporation manages more than 200 rest stops nationwide, and has already helped nine restaurants to automate. Kitchen staff are reassigned to people-facing roles at counters, kiosks, and visitor centers, Kim said. 

“Ensuring employment stability and creating new jobs will be a key priority” as the corporation pushes forward with automation, she said. “Robots have stirred a revolution in the global food tech industry and represent a new paradigm for transforming rest-stop restaurants.” 

But the robots are likely to displace some workers, Hwang Ji-woong, head of South Korea’s rest stop restaurant workers’ union, told Rest of World. Two out of eight employees at Munmak were laid off after the robots were installed in February 2024, Lee Hyun, deputy manager at the rest stop, told Rest of World.

“[Robots] could improve productivity in the long run, but for now, workers who want to stay will have nowhere to go,” Hwang said.

Restaurant workers in the country are at high risk of being displaced by automation due to the technical, repetitive nature of their job, according to a recent study

“While automation may offer a crucial solution to South Korea’s shrinking workforce, the transition risks plunging many workers into unemployment,” Koo Kyo-jun, a public administration professor at Korea University and co-author of the study, told Rest of World. To ease the burden, the government should invest in retraining programs that help workers adapt to shifting job roles, or pivot into new careers, Koo said. 

Before automation, Munmak’s kitchen staff worked at breakneck pace during peak hours. The heat pressed in, fumes clung to their clothes, and the rush wore down even the most seasoned workers, chef Park recalled.

“Summers are especially exhausting. Customers pack the restaurant, can’t find seats, and stand in lines to wait for their food,” she said.

The work is hard on older women, who usually staff rest stop kitchens. They strain their joints lifting heavy pots and endlessly stirring boiling stews. They work 12-hour shifts, including weekends and holidays. Wages are low, and turnover is high. 

Still, some women stay because these jobs, backed by a large corporation, are less precarious than those in smaller restaurants.

Without our input, the robots can’t operate on their own.

Since the automation, the kitchen is usually calm. Park no longer cooks. She monitors the machines, fixes glitches, restocks ingredients, and scrubs dishes, working fast before the next wave of orders crash in. “We each used to work in our own stations, but now we have to master every task to run the entire kitchen alone. It’s really challenging,” she said. 

Hers is not the only restaurant undergoing the transition. Nestled in a scenic city overlooking the Namhae Sea, the Sacheon rest stop restaurant was once known for its eclectic seafood dishes. But in June, the restaurant will install robot chefs to make ramen.

At Mumank, Park Young-sook, 65, worked as a hostess and waitress for 12 years before transitioning into a role as head of kitchen. While the robots have eased her workload, learning to work alongside them has been a challenge, she told Rest of World

“Without our input, the robots can’t operate on their own,” she said.

Every day, Park stocks the machines with ingredients, loads bowls and plates into dispensers, and adds garnishes too delicate for the robots to handle. She also oversees the robots’ cooking, stepping in when their arms freeze or the timing spirals out of sync. When the robots splatter ramen onto the conveyor belt, she scrambles to mop it up while customers yell at her over delayed service, she said. 

After the layoffs in February 2024, “some of the kitchen staff even quit because they couldn’t get used to the menial nature of working alongside the robots,” Park said.

Still, Park is learning to use tablets, and to keep pace with machines that speak in beeps, as finding a new job at her age is difficult. She is grateful that, for now, the robots still need her help — but that may not be the case for long.

“I guess when the robots become really advanced, we’ll all become useless,” she said.

China Outside China

When foreign factories clash with locals

Gotion’s attempt to open a battery plant in smalltown Michigan is hardly the first time big companies have run into trouble abroad.

A large white sign in a snowy field reads "NO CCP" and WE WILL NOT BE SILENCED! against a backdrop of leafless trees and overcast skies.
Lyndon French for Rest of World
Lyndon French for Rest of World

When the Chinese battery company Gotion announced its plans to open a factory in the small college town of Big Rapids, Michigan, in 2022, it seemed like the kind of thing Michigan — and the U.S. economy — needed. The facility was slated to bring an estimated 2,350 jobs and $2.3 billion of investment. Gotion would pay future workers $62,000 a year, more than 50% higher than the local median household income. And a new plant would be aligned with the revival of U.S. manufacturing — a goal espoused by both Democrat and Republican politicians. 

But, as Viola Zhou reports in our in-depth feature, many locals were vocally opposed to the project. Hundreds of residents protested the factory: putting up yard signs, creating Facebook groups, and organizing rallies. They claimed the chemicals produced from the plant would be toxic, and said the electric-vehicle revolution was a scam. They called Gotion’s Chinese ownership suspicious, and painted the battery plant as a Communist Trojan horse. 

What is Gotion?

Gotion was founded in 2006 in the eastern Chinese city of Hefei by Zhen Li. For the first few years, Gotion’s lithium iron phosphate batteries only powered electric bicycles, and the company struggled to turn a profit.  

Then, in 2009, Gotion caught a lucky break: The Chinese government announced a monumental industrial policy which helped turn the country into the world’s EV powerhouse. A flood of subsidies, loans, and local government orders promoting the EV industry followed.

Struggling to compete against giants like CATL and BYD at home, Gotion’s Chairman Li set his eyes abroad. By manufacturing outside of China, Gotion would be closer to local automakers, benefit from local government subsidies, and dodge potential tariffs against Chinese imports. 

Is Gotion’s Michigan factory open?

More than two years after the project was announced, there is little visible progress at the proposed factory site. The former JCPenney department store that Gotion leased to be its office building is still empty as of December 2024. Although Gotion won a court ruling in May 2024 to continue developing its factory, officials said they had not received any new permit applications. Gotion says the project has not been abandoned. Another U.S. Gotion factory, in Manteno, Illinois, is making much quicker progress.

Where else have Asian factories clashed with locals?

Drawn to its access to European automakers, government subsidies, and favorable geopolitical relations, Chinese battery manufacturers have announced more than $10.9 billion worth of investments in Hungarian factories. As in Michigan, these factories have been controversial with local residents. In Mikepércs, a town 250 kilometers east of Budapest, a group of mothers banned together to fight against a factory being built by Chinese battery giant CATL, fearing environmental degradation. In recent years, there has been a focus on environmental damage and negative health effects from South Korea-funded battery plants in Hungary. 

Another struggle occurred in India, where Foxconn began sending Chinese engineers to the country to train the next generation of iPhone builders. For years, Apple relied on China for assembling its products. But political and economic factors forced the company, as well as the broader tech sector, to rethink that approach by seeking partners from across the region. In China, Foxconn demands long days, high targets, and minimal delays and mistakes — all of which proved difficult, if not impossible, to replicate in India. A Taiwanese manager told Rest of World that India’s 8-hour shifts and industry-standard tea breaks were a drag on production. “You have barely settled in on your seat, and the next break comes.”

How have factories from other Asian companies been received in the U.S.?

Previously, Rest of World reported on Taiwanese semiconductor giant TSMC’s struggle to build a factory in Phoenix, Arizona. The project, which was announced in 2020, was plagued by missed deadlines and tension between Taiwanese and American coworkers. American engineers complained of rigid, counterproductive hierarchies at the company; Taiwanese TSMC veterans described their American counterparts as lacking the kind of dedication and obedience they believe to be the foundation of their company’s world-leading success.