Samsung Electronics has become the first company to receive government approval to extend the working week for employees of the semiconductor research and development department. The company’s request was approved by the Gyeonggi branch of the South Korean Ministry of Employment and Labor. This became possible due to a new policy aimed at increasing the competitiveness of the industry.
Under the exception to the general rule, Samsung’s chip research and development employees can work up to 64 hours a week for the first three months and up to 60 hours a week for the next three months. This is significantly higher than the 52-hour workweek established by law in South Korea.
This permission was granted after the government updated labor laws on March 14, allowing companies to apply for an extension of overtime for chip R&D workers for 6 months at a time (previously 3). Under the new rules, companies can also submit a one-time application for an additional six-month extension.
Samsung is seeking to accelerate the development of semiconductors amid fierce competition with Taiwan’s TSMC, which is already finalizing preparations for mass production of chips using 2-nm technology and is actively developing even more advanced 1nm chips. In response to these challenges, the South Korean tech giant is trying to close the gap, but is facing a shortage of engineers with the required skills. It is expected that if specialists work harder, it can speed up development.
According to a Labor Ministry official, other semiconductor companies are also preparing similar requests.
Although 64 working hours per week is a lot of time, it is not the most hours that employees should spend at work. CEO of one of the largest IT companies in India proposes to introduce a 70-hour working week. And at JP Morgan, the bankers’ working week is as follows is 80 hours. This is after its duration was reduced.
Source: chosun