April 24, 2026 | 06:57 am
TEMPO.CO, Jakarta - About 40,000 Samsung Electronics workers rallied on Thursday, demanding a larger share of the company's booming profits.
Unions warned they could launch an 18-day strike if their demands are not met, potentially disrupting the production of chips necessary to feed the growing AI industry.
The South Korean giant said it would continue efforts to reach a swift agreement in ongoing wage negotiations.
What are Samsung unions demands?
Samsung unions said the company failed to offer an adequate pay package despite its strong performance. Samsung's shares have surged nearly 300% over the past year, driven by demand for AI chips.
The unions want Samsung to remove the cap on bonus pay, among other demands. The cap is currently set at 50% of the annual base salary.
The unions say that a chip division employee earning 76 million won ($51,000, €44,000) would receive a 2025 bonus of 38 million won ($26,000, € 22,000). This is less than a third of what a worker in a similar role at rival company SK Hynix would receive. Last September, SK Hynix agreed to scrap its bonus cap.
SK Hynix is the direct rival of Samsung Electronics. The two South Korean companies produce together about two-thirds of the world's memory chips.
SK Hynix overtook Samsung to become Nvidia's main supplier of high-bandwidth memory (HBM) chips following the launch of ChatGPT in 2022.
Strikes threaten AI chips supply
Samsung has rejected union demands to remove the bonus cap but says it will offer additional funding so memory division workers, who develop memory chips, earn more than competitors this year.
If talks fail, unions plan an 18-day strike starting May 21. They say a halt of production could cost the company more than 1 trillion won ($700 million, €600 million) per day.
Even a short disruption could damage customer trust and take years to recover from, Samsung officials say.
Chipmakers have benefited from the AI boom, but the Middle East conflict has raised concerns about supply chains. The crisis has restricted access to key materials such as helium and pushed up energy costs.
Samsung, long known for resisting unions, saw its first-ever worker strike in 2024.
Read: Top 10 Richest Koreans in 2026 Ranked by Net Worth
Click here to get the latest news updates from Tempo on Google News
Apple Rumored to Launch iPhone 18e with Downgraded Components
1 hari lalu
Apple is speculated to introduce iPhone 18e as part of the iPhone 18 Pro and Pro Max product line to offset high production costs.
Samsung to Roll Out AI Scam Detection Across Galaxy Phones
11 hari lalu
Samsung will introduce an artificial intelligence (AI)-based feature to prevent online fraud on more Galaxy devices.
Apple Overtakes Samsung in Phones Sales Worldwide
21 Januari 2026
After 14 years behind Samsung, Apple is back on top in global smartphone sales, just as Chinese rivals step up the pressure.
Apple Projected to Dethrone Samsung as Global Smartphone Leader
2 Desember 2025
Counterpoint Research projects that Apple will ship a total of over 243 million iPhones in 2025.
Samsung Reportedly Set to Release Its First Triple-Folding Phone in December
14 November 2025
A report on the upcoming release of Samsung's new foldable phone, Galaxy Z TriFold, along with its specifications and comparison to the Galaxy Z Fold7.
AI Users in Indonesia Reach 59 Percent, Industry Records Increased Activity
22 Oktober 2025
Indonesia is categorized as a country with a very high level of AI adoption.
Apple Cuts iPhone Air Production as Demand for Ultra-Thin Phones Slows
20 Oktober 2025
The situation of the iPhone Air seems to be resembling Samsung's cancellation of Galaxy S26 Edge production due to the sluggish market for the S25 Edge.
Samsung to Launch Its First XR Android Headset in Late October
6 Oktober 2025
Samsung targets an initial shipment of around 100,000 units for Project Moohan.
Trump: Not Only iPhones, All Phones From Outside the US Will Be Hit With 25 Percent Tariff
29 Mei 2025
Donald Trump is threatening to impose a 25 percent import tariff on phones and similar products manufactured outside the US.
Apple May Be Cooking Up a Bezel-Free iPhone for Its 20th Anniversary
17 Mei 2025
For their 20th anniversary celebration, Apple suppliers are developing curved screen technology for the four sides of the iPhone.
