Workers at Samsung had been pushing the company to rethink how it rewards employees as demand for AI memory chips sends profits soaring.

The global AI boom is creating winners everywhere, from chipmakers to investors. But at Samsung Electronics, the surge in profits also sparked an increasingly bitter battle over who deserves a slice of the money. For months, workers at Samsung had been pushing the company to rethink how it rewards employees as demand for AI memory chips sends profits soaring. At one stage, more than 47,000 workers were preparing to walk off production lines in South Korea after negotiations broke down, raising fears of disruption at the world’s largest memory chip maker. Now, after tense talks and strike threats, Samsung workers have approved a landmark profit-sharing agreement that could hand employees in its lucrative memory-chip division eye-watering bonuses worth hundreds of thousands of dollars each, reports Financial Times. Samsung Electronics workers deal for bonus salaries The new agreement was approved after 74 per cent of members from Samsung’s labour union voted in favour of the proposal. Under the deal, around 78,000 semiconductor employees will receive 10.5 per cent of Samsung’s operating profits, in addition to bonuses already provided through existing schemes. Based on profit forecasts from brokerage KB Securities, the total bonus pool could exceed Won34tn, or roughly $22.6 billion. The biggest winners are expected to be workers in Samsung’s booming memory-chip division, which has become central to the global AI race. Employees there could reportedly receive bonuses averaging around Won600mn each, close to $400,000. Not everyone will receive the same payout. Roughly 40 per cent of the bonus pool will be distributed equally among workers, while the remaining amount will depend on the performance of specific business units. Employees in Samsung’s struggling Foundry and System LSI divisions are expected to receive significantly lower payouts, estimated between Won150mn and Won200mn. Investors appeared pleased with the outcome. Samsung shares rose more than 6 per cent following news of the agreement. The deal also mirrors a similar move by rival SK Hynix, which last year agreed to share 10 per cent of operating profits with employees for the next decade. Samsung Electronics worker strike explained Behind the massive bonuses lies a much deeper frustration over how AI wealth is being shared inside Samsung. Workers argued that while the company was enjoying record profits from AI-driven demand for high-bandwidth memory chips, employees were not seeing enough of the rewards. Samsung currently caps performance bonuses at 50 per cent of a worker’s salary, something unions have long criticised as outdated and restrictive. By comparison, SK Hynix recently scrapped its 10-year limit on bonus payments and expanded profit-sharing for employees. Samsung workers claim this has created a huge gap between the two companies, with some SK Hynix employees reportedly receiving more than three times the bonuses paid by Samsung. The dispute also exposed tensions between Samsung’s semiconductor business and its DX division, which includes smartphones and home appliances. Union leaders argued that those divisions helped support the semiconductor unit during weaker periods but were now being left behind as AI profits exploded. “We admit that we failed to formulate an active strategy to prevent discrimination” against the DX division, acting union president Woo Ha-kyung said, reports Financial Times. Now what? For now, the immediate threat of a large-scale strike appears to have eased, but the episode signals a major shift in South Korea’s tech industry. AI has transformed memory chips into one of the hottest businesses in the world, pushing Samsung, SK Hynix and even US chipmaker Micron Technology past trillion-dollar market value milestones. Workers increasingly want compensation models that rise alongside those profits. And after Samsung’s latest agreement, unions across the semiconductor industry may feel emboldened to push for similar deals.

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