Strike against Artificial Intelligence: Samsung chip workers threatened a historic strike and got a $300,000 bonus

The reason was the workers threatened with a historic 18-day strike against Artificial Intelligence and the profits it generates, but from which they did not receive a cent, until now.

Samsung and the union reached that agreement last week to avoid a general strike with a commitment that contemplates individual premiums up to $338,000 this year for 78,000 employees of the chip division, out of a total of 125,000 in the country.

The deal reached late last week came amid a global AI boom that has boosted Samsung’s high-bandwidth memory chip business, crucial for AI data centers.

Under the 10-year pact, tied to ambitious performance targets, annual bonuses would amount to 10.5% of the chip division’s operating profits and would be paid in shares, along with an additional 1.5% in cash.

Samsung registered a approximately 750% increase in its first quarter operating profits compared to the previous year, while its market capitalization exceeded $1 trillion at the beginning of May.

The possibility of a strike had sparked great concern in South Korea, where only Samsung represents around 12.5% ​​of GDP and memory chips make up about 35% of exports.

This labor dispute also fueled debate over how profits from AI should be distributed. a high presidential official even raised the idea of ​​a “national dividend”arguing that surplus tax revenue related to AI could be used to fund social welfare programs.

“We inform you that the preliminary agreement of the 2026 wage agreement has been approved in the vote,” the joint negotiating delegation of the two unions with voting rights said in a statement. With a 95.5% turnout among the 65,593 workers eligible to vote, 46,142 supported the pact and 16,474 rejected it in the six-day vote, according to the report.

“I thank the union and all the employees who participated in the negotiations sincerely, without letting go of the thread of dialogue until the end,” said Yeo Myeong-gu, head of the human resources team of the device solutions (DS) division of Samsung Electronics, at the signing ceremony held later in Yongin, Gyeonggi Province.

For its part, Choi Seung-ho, head of the chipmaker’s main union, He noted at the event that although there were aspects “that left something to be desired” in the negotiation, he believes that a “significant agreement” was reached.

The pact contemplates a special bonus for the DS division, in charge of the semiconductor business, equivalent to 10.5% of business performance and without a maximum payment limit.

The DS division’s special bonus will be paid entirely in Samsung’s own shares after taxes and will be valid for ten years, until 2035, provided that minimum operating profit targets are met.

Thanks to the deal, DS employees could receive between 210 million and 600 million won in bonuses ($140,000 to $400,000) this year, according to estimates by local news agency Yonhap.

Las Formal negotiations began last Decemberwhile pressure increased on Samsung Electronics after its rival SK hynix agreed last year with its main union for a 6% wage increase, eliminated the previous cap on bonuses and agreed to allocate 10% of operating profit to incentives.

The agreement at Samsung averted a massive 18-day strike by nearly 50,000 employeeswhich would have been the largest in the history of the firm and which was about to begin last week.

The South Korean government ended up acting as a mediator in the negotiations due to concerns about the multibillion-dollar losses that the strike would cause for the national economy and the global supply of chips.

On the other hand, tensions persist with another union focused on employees of the DX division (mobile phones, televisions and household appliances), which on Tuesday presented a request for precautionary measures to suspend the vote after denouncing having been excluded from it.

Likewise, the result reflected divisions between the two unions with voting rights. The majority union, which has some 57,000 members and a strong presence in the semiconductor area, supported the agreement with 80.6% favorable votes, while the other union, with just over 8,000 qualified voters, registered only 21.1% support.

The central point of the pact is a new special bonus for the device solutions (DS) division, in charge of the semiconductor business, equivalent to 10.5% of the business performance of that area and with no maximum payment limit.

The union initially demanded to reserve 15% of operating profit for bonuses and eliminate the existing cap, which limited incentives to a maximum equivalent to 50%.

The special DS bonus will be paid entirely in Samsung’s own shares after taxes. The scheme will be valid for 10 years, until 2035, provided that minimum operating profit objectives are met.

The bonus fund will be distributed 40% in a common way for all DS, and 60% according to the business units that comprise it.

Thanks to the deal, DS employees could receive between 210 million and 600 million won in bonuses ($140,000 to $400,000) this year, according to estimates by local news agency Yonhap.

One of the most conflictive points, the bonus for DS deficit units, was agreed but deferred: they will receive 60% of the percentage calculated with the common fund, although the rule will come into force from 2027.

The pact also includes a total salary increase of 6.2% and improvements in social benefits, such as aid for the birth of children and a housing loan program.

Although the agreement was approved with 73.7% votes in favor and a participation of 95.5%, the result broken down between the two unions with voting rights showed a strong discrepancy.

The majority union, which has some 57,000 members and a strong presence in the semiconductor area, supported the agreement with 80.6% favorable votes, while the other union, with just over 8,000 eligible voters, registered only 21.1% support.

Adding to these tensions are the legal actions of the Donghaeng union, focused on employees of the DX division (mobile phones, televisions and household appliances), which reported having been excluded from the vote after leaving the negotiating block. The union on Tuesday requested precautionary measures to suspend the vote and said it was evaluating additional legal measures to invalidate it.

The fracture responds largely to the bonus gap. DX workers will receive bonuses of about 6 million won ($4,000), according to Yonhap, well below the DS division’s bonuses.

The agreement avoided a planned 18-day strike originally from May 21 to June 7, to which more than 47,000 workers were called and suspended last week at the last minute. If it had occurred, it would have been the biggest strike in the history of Samsung Electronics.

Formal negotiations began last December, while pressure mounted on Samsung Electronics after rival SK hynix last year agreed with its main union on a 6% pay rise, removed the previous cap on bonuses and agreed to allocate 10% of operating profit to incentives.

The workers demanded remuneration that is in line with the historical profits recorded by the company. The chipmaker multiplied its net profit almost six-fold in the first quarter of 2026, to 47.2 trillion won (about $31.79 billion), compared to a year ago, thanks to the global rise of artificial intelligence (AI).

The pay dispute escalated considerably in April, when between 34,000 and 39,000 employees, according to police and organizers, demonstrated in front of the company’s headquarters in Pyeongtaek, in a protest on a scale unprecedented in the firm’s history.