Seoul, South Korea: Samsung Electronics union members approved a Samsung AI bonuses deal on Wednesday, averting a major strike as chip profits rise on artificial intelligence demand.
The agreement makes about 78,000 employees eligible for annual bonuses estimated at roughly USD 370,000 each this year, based on projected operating profit. Samsung has about 125,000 employees in South Korea.
The union said more than 73% of members backed the deal after an electronic vote. Around 62,600 ballots were cast over six days, representing more than 95% of eligible union members.
The 10-year agreement links bonuses for the semiconductor division to performance targets. Employees in the chip unit would receive 10.5% of the segment’s operating profit in shares and another 1.5% in cash.
Samsung’s first-quarter operating profit rose about 750% year-on-year in April, while its market value topped USD 1 trillion for the first time this month. The company has benefited from global demand for memory chips used in AI data centres.
The deal has widened tensions inside Samsung. Workers in mobile, display and consumer electronics divisions are set to receive different rewards, while a smaller union has filed an injunction to block the agreement.
Discontent has also spread to Samsung Display, Samsung SDI and Samsung Electro-Mechanics. Some retail shareholders said the agreement lacked their approval and warned of possible legal action.
Read: Samsung Labour Strike South Korea Risks $667 Million Daily Loss
Analysts said large bonuses could help retain engineering talent as US companies, including Tesla, expand AI chip investment.
