A major labour dispute is brewing at Samsung Electronics, as more than 45,000 workers prepare for what could become the largest strike in the company’s history over disagreements related to bonus payouts linked to the global AI boom.
The planned 18-day strike is scheduled to begin on May 21 and has raised concerns among South Korean officials, investors and technology markets over possible disruptions to semiconductor production and global supply chains.
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At the centre of the dispute is a disagreement over how profits from surging demand for artificial intelligence chips should be distributed among employees.
Samsung has reportedly offered generous bonuses to workers but proposed significantly higher payouts for around 27,000 employees in its profitable memory chip business compared to workers in logic chip design and manufacturing divisions.
The company’s memory division has benefited heavily from a global shortage of memory chips used in AI data centres, smartphones and laptops. However, employees in Samsung’s logic chip and foundry businesses, which manufacture advanced chips for companies such as Tesla and Nvidia, argue they should not be excluded despite contributing to AI-related operations.
Union representatives say the large disparity in bonuses risks worsening divisions between departments and could accelerate employee departures to rival firms.
Industry analysts have warned that prolonged labour action could hurt Samsung financially and impact chip availability worldwide. Estimates suggest the strike could significantly affect operating profits and sales if production is disrupted.
The labour dispute has also exposed internal tensions within Samsung’s semiconductor strategy, where multiple chip businesses operate under one corporate structure.
Critics argue the company’s integrated model has created unequal profit distribution and conflicting incentives between divisions.
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Meanwhile, rival SK Hynix has reportedly attracted Samsung employees after offering higher bonus packages. Samsung Chairman Jay Y. Lee recently apologised publicly over the labour dispute, signalling the seriousness of the standoff.
The company said it remains committed to offering industry-leading compensation while continuing long-term investment in its strategically important logic chip business. Negotiations between management and union representatives are ongoing as the strike deadline approaches.