📈 Samsung Chip Division Workers to Receive Over $339,000 Average Bonus
Samsung Electronics has averted a major labor strike by agreeing to distribute KRW 40 trillion (approx. US$ 26.60 Bn) in performance bonuses to its semiconductor division employees, driven by skyrocketing profits from the global AI boom. • Overall Figures & Payouts: The chip division average bonus per employee is estimated at US$ 339,000. Samsung will distribute 10.5% of its annual profit in stock and an additional 1.5% in cash. This 10-year program outperforms rival SK Hynix’s 10% offer but fell short of the union's initial 15% demand. Employees can sell one-third of the stock immediately and the rest over two years, with payouts expected in early 2027. • Driver of Profitability: Surging global demand for DRAM and High Bandwidth Memory (HBM) chips—critical for AI servers and accelerators—has caused severe supply tightness. In Q1 2026, Samsung's semiconductor and memory chip division accounted for a massive 94.0% of the company's total operating profit. • Risk Mitigation: The 18-day strike, scheduled for May 21, was called off a day prior through government-mediated negotiations. A strike would have halted production for nearly three months, severely worsening the global memory chip shortage. The agreement is subject to a final union vote in the coming weeks.