Encouraging Partner Firms' Innovation Efforts
Samsung Electronics announced on Jan. 24 that it will pay its 224 semiconductor partner firms a total of 38.18 billion won (US$33.79 million) in “productivity incentives” and “safety incentives” for the second half of 2018.
The incentives for the second half of last year will be paid to 18,000 executives and employees of Samsung’s partner firms in the semiconductor sector on Jan. 25. This is the highest figure since the company introduced the system in 2010. The receipients of the incentives are officials of excellent first-tier and second-tier suppliers that operate at each workplace of Samsung Electronics’ device solution (DS) division.
Samsung Electronics has been offering customized training programs to its semiconductor partner companies, such as communication, leadership and occupational training, as well as incentives since 2017 in order to strengthen coexistence and mutual growth with them. The company is planning to increase the number of programs to more than 400 this year considering a high level of participant satisfaction.
Meanwhile, Samsung Electronics has been introducing the “productivity incentive” system since 2010 in a bid to encourage its suppliers to step up innovation activities related to production and quality.
The company has been also implementing the “safety incentive” system for suppliers related to environmental safety and infrastructure since 2013 in order to improve their executives and employees’ safety awareness.