Samsung Electronics is facing a possible large-scale strike involving around 47,000 workers in South Korea, as labour tensions rise over pay and profit-sharing during a global surge in demand for AI-related chips.
The workers, represented by the company’s main labour union, are demanding higher performance-linked bonuses and a larger share of Samsung’s operating profits. They argue that employees across chip divisions have contributed significantly to the company’s strong earnings and should receive better compensation.
Union leaders are reportedly seeking a system where about 15% of annual operating profits are distributed to employees, along with changes to existing bonus structures. They say current policies do not fairly reflect worker contributions, especially during a period of strong chip demand.
Samsung has so far resisted the demands, proposing a more limited bonus structure and maintaining its current compensation framework. The gap between both sides has led to rising tensions, with talks still ongoing.
The potential strike comes at a sensitive time for Samsung, as global demand for semiconductors used in artificial intelligence, data centres and consumer electronics continues to rise. Any disruption in production could impact global supply chains.
The union has warned of an extended strike if negotiations fail, raising concerns in South Korea, where the semiconductor industry plays a key role in exports and economic growth. Authorities have urged both sides to reach an agreement to avoid wider economic disruption.
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