Tens of thousands of Samsung Electronics workers gathered at the company’s massive semiconductor complex in Pyeongtaek on Thursday, demanding a larger share of the record profits generated by the artificial intelligence boom.
The National Samsung Electronics Union (NSEU), which has seen its membership surge to over 90,000 workers, warned of a potentially devastating 18-day strike starting May 21, 2026, if compensation demands are not met.
The “AI Lottery” and Performance Gaps
The protest was fueled by growing frustration over a widening pay gap between Samsung and its cross-town rival, SK Hynix.
While both companies have benefited from the explosive demand for High Bandwidth Memory (HBM) chips used in AI data centers, workers argue that Samsung’s bonus structure remains restrictive.
The union is demanding a 15% share of annual operating profit be allocated for bonuses. They are also calling for the removal of the current 50% cap on performance pay.
This follows reports that SK Hynix employees received “lottery-sized” bonuses after their company eliminated bonus caps in late 2025.
Union leader Choi Seung-ho told the crowd that Samsung workers deserve transparent and fair compensation.
He stated that these rewards should reflect the company’s “AI windfall” and the record profits produced by the employees.
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Financial Stakes and Global Impact
Samsung recently forecast a record first-quarter operating profit of 57.2 trillion won ($38.6 billion).
However, the union claims that an 18-day walkout could cost the tech giant more than 1 trillion won ($676 million) per day in lost production.
A prolonged disruption at Samsung, the world’s largest memory chip maker, could trigger global shortages and price spikes for AI hardware.
Industry analysts warn that any halt in production would directly benefit competitors like SK Hynix and Micron.
This disruption could potentially shift market leadership during a critical expansion phase for AI infrastructure.
Samsung Management and Geopolitical Pressures
Samsung management has offered a 10% profit allocation and a 6.2% wage increase. The union rejected this proposal, holding out for a 7% base pay hike and better benefits.
The standoff is further complicated by rising energy costs and supply chain risks for materials like helium.
These challenges are driven by ongoing geopolitical tensions in the Middle East.
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About the Author
Sahiba Sharma
Contributing Writer