South Korean technology giant Samsung Electronics is facing its largest labour crisis yet, with nearly 48,000 workers threatening to embark on an 18-day strike over disputes surrounding bonus payments and profit sharing.
The planned industrial action, expected to begin on Thursday, could significantly disrupt global memory chip supplies at a time when demand for artificial intelligence infrastructure remains high.
The strike is being led by Samsung’s labour union, which is demanding the removal of a cap that currently limits employee bonuses to 50 per cent of annual salaries.
Union leaders are also pushing for 15 per cent of Samsung’s annual operating profit to be set aside for employee bonuses and want the arrangement permanently guaranteed beyond 2026.
According to reports from negotiation meetings, Samsung proposed a different compensation structure.
The company reportedly offered one-off bonuses ranging from 50 per cent to 100 per cent for workers in its logic chip division and suggested that some memory chip employees could receive bonuses exceeding those paid by rival SK Hynix.
However, Samsung has resisted demands to permanently abolish the 50 per cent bonus cap.
The dispute comes amid soaring profits across the semiconductor industry, driven largely by the global boom in artificial intelligence and growing demand for memory chips used in data centres, smartphones and laptops.
Tensions reportedly intensified after SK Hynix scrapped its own bonus cap last year, leading to significantly larger payouts for employees and prompting many Samsung workers to switch employers.
The union says about 48,000 workers — roughly 38 per cent of Samsung Electronics’ domestic workforce — have signed up to participate in the strike.
A South Korean court has partially granted Samsung an injunction requiring minimum staffing levels at some facilities during any industrial action.
As a result, more than 7,000 workers will still be required to report for duty even if the strike proceeds.
Samsung’s semiconductor factories in South Korea operate around the clock in major production hubs including Pyeongtaek and Hwaseong.
Analysts warn that a prolonged strike could worsen global chip shortages.
According to KB Securities analyst Jeff Kim, an 18-day strike could reduce global DRAM memory supply by up to four per cent and NAND memory supply by up to three per cent, potentially driving prices even higher.
Samsung currently controls about 36 per cent of the global DRAM market, making it the world’s largest producer of memory chips.
South Korean officials are also concerned about the wider economic implications, as Samsung accounts for nearly a quarter of the country’s exports.
An official from South Korea’s central bank reportedly warned that, in a worst-case scenario, the strike could reduce the country’s projected economic growth by 0.5 percentage points if chip production losses reach 30 trillion won.
