Samsung employees receive a bonus of 400 thousand euros thanks to AI

The employees of Samsung Electronics have approved a historic agreement profit sharing which should guarantee the workers of the thriving division of memory chip an average bonus of nearly $400,000.

The agreement was approved on Wednesday with 74% of votes in favour workers union of the company, putting an end to months of negotiations on the sharing of profits deriving from the boom achieved by theartificial intelligence inside the world’s largest memory chip manufacturer. The union had threatened an AI strike if an agreement was not reached.

Distribution of operating profits

Under the agreement, 78,000 workers in the food sector semiconductors they will receive 10.5% of the operating profits of the company. This would equate to a bonus amount of more than that 34 trillion won (22.6 billion dollars), based on an operating profit forecast of 327,000 billion won for this year, developed, as reported by Financial Timesfrom the brokerage firm KB Securities. This bonus is in addition to the 1.5% already paid through existing incentive plans. Al Kospi of Seoul Samsung shares rose 8%.

Distribution of bonuses between divisions

Approximately 40% of the chip bonus prize pool will be split equally, while the remainder will depend on the performance of each player. business unit. It is expected that employees in the memory chip will receive 600 million won each, while those of the units Foundry e System LSIcurrently running at a loss, will likely receive between 150 and 200 million won.

Comparison with SK Hynix

The agreement follows a similar agreement reached last year with its South Korean rival SK Hynixin which employees were promised 10% of operating profits for the next 10 years. This would translate into an average bonus of 710 million won for each of SK Hynix’s 35,000 employees, based on operating profit projections of 250 trillion won. The two companies are benefiting from the growing demand for high bandwidth memory chip used in artificial intelligence systems.

Capitalization and Device Experience division

Samsung recently became the first South Korean company to achieve one market capitalization of 1,000 billion dollars and today SK Hynix has followed the example of its compatriot, while the US chip manufacturer Micron it closed yesterday on Wall Street above the threshold of 1,000 billion dollars. Unlike SK Hynix, Samsung is not a pure chip maker.

The critical issues of the DX division

The employees of the division Device Experience (DX)which makes smartphones, televisions and other devices, will receive bonuses amounting to only 6 million won, according to a source close to the company. The DX division is experiencing lower profitability due to Chinese competition and because of higher chip prices, which directly benefit Samsung’s semiconductor division.

The union’s statements

“We recognize that we have failed to formulate an active strategy to prevent the discrimination” towards the DX division, he said Woo Ha-kyunginterim president of the national union of Samsung Electronics, who recalled that “when the semiconductor industry was struggling, smartphones and home appliances generated revenue that contributed to the growth of the semiconductor division.”