Samsung chip employees were presented with an average bonus of $340,000 while the union aims for a $1 million bonus and is considering an 18-day strike.

      Leaked transcripts reveal that memory-line employees were offered bonuses of up to 607%, totaling around $477,000, while those in the logic-chip division are expected to receive as little as 50%. A potential walkout involving 45,000 workers would mark the largest strike in semiconductor history.

      According to a report by Bloomberg on Thursday, Samsung Electronics plans to distribute an average bonus of about $340,000 to its chip employees this year as the company seeks to share the profits from a record AI-memory cycle and prevent a strike that could disrupt high-bandwidth memory production during peak demand.

      However, the union has not been satisfied with this offer based on current reports. The National Samsung Electronics Union, which has 45,000 members, is organizing for an 18-day strike, potentially the largest in the semiconductor sector's history.

      Details from the leaked negotiating materials highlight the bonus system sharply. Internal Samsung meeting notes indicate that staff in the memory division were offered bonuses of 607% worth roughly $477,000, while logic-chip employees in the foundry sector were informed of expected bonuses as low as 50%.

      This discrepancy mirrors the current business situation: Samsung's HBM3E and HBM4 production lines are fully operational, meeting high demand from Nvidia, AMD, and hyperscaler customers, while the foundry side continues to lag behind TSMC and faces margin pressures. Union representatives have termed this imbalance a "retention crisis that the company cannot afford," as noted in the same transcripts.

      The average bonus figure of $340,000 reported by Bloomberg is an aggregate for the chip division, but workers argue this amount is insufficient. The union is advocating for compensation closer to $1 million per employee, aligned with SK Hynix’s profit-sharing payouts of $900,000 to $1 million.

      The core issue is that Samsung's bonus is a one-time payment rather than part of a consistent profit-sharing plan, leaving workers vulnerable during downturns while allowing the advantages of the AI boom to be concentrated among shareholders.

      The impending strike poses a significant threat. The union's 45,000 members comprise the majority of Samsung’s memory and logic operations in Korea. An 18-day stoppage in HBM production could directly impact output that Nvidia, AMD, and key hyperscalers have factored into their second-half capital expenditure commitments.

      Fortune estimates that such a stoppage could result in $20 billion in lost production and affect downstream customers. Talks, mediated by the government, have resumed just ten days before the proposed walkout, with this recent summit viewed as a final effort to avert industrial action.

      This situation is occurring within a broader context involving Samsung. The company’s achievement of a $1 trillion milestone and its governance structure have created a notable public relations issue, with the union alleging in various forums that the profits from the AI cycle are being systematically diverted away from the workers responsible for creating the products.

      The bonus debate exemplifies this operational conflict. The labor market dynamics have intensified as well; earlier this week, Standard Chartered announced 7,000 job cuts, contributing to an environment where highly compensated semiconductor workers are concurrently demanding profit shares from the AI-driven cycle and safeguards against the downturn sparked by AI developments in other sectors.

      The backlash from Gen Z graduates against pro-AI keynote speakers illustrates a generational response to similar concerns. Currently, the Samsung union dispute is the most prominent example of labor action reflecting this broader dynamic.

      Samsung has not disclosed specific information about the distribution of the $340,000 average bonus, the breakdown being negotiated, or contingency plans in place in the event that the 18-day strike goes ahead as scheduled.

      The next significant indicator will be the results of the government-mediated final talks, which are expected to conclude before the strike window begins. Samsung's Q2 earnings call, set for late July, will provide the first public insight into how the AI-memory cycle has impacted the company's reported results and whether the bonus structure will hold up in subsequent negotiations.