Key Points:
- The largest Samsung union plans an 18-day strike starting May 21 if its demands are not met.
- Workers want a 7% wage increase and a massive overhaul of the annual bonus system.
- The union claims Samsung employees receive far less bonus pay than workers at rival SK Hynix.
- A strike at Samsung could create severe global bottlenecks for computer and smartphone chips.
The largest labor union at Samsung Electronics in South Korea is preparing for a major fight. The group’s leader recently warned that workers will disrupt the global production of memory chips if the company refuses to meet their demands for better pay. Union members are currently voting on a plan to walk off the job this May.
A strike at Samsung, the world’s largest maker of memory chips, would cause massive problems across the globe. Right now, tech companies desperately need chips to power artificial intelligence data centers, build new cars, and manufacture smartphones. A sudden halt in Samsung’s factories would severely worsen the current bottlenecks in the global technology supply chain.
Choi Seung-ho leads the Samsung Electronics Labour Union. He told reporters last week that he fully expects a major production disruption. If the union and the company fail to reach an agreement, the workers plan to strike for 18 full days starting on May 21. Choi stated this action could stop about half of the total output at Samsung’s sprawling semiconductor complex in Pyeongtaek.
A spokesperson for Samsung responded to the threat by stating that the company will continue to speak with employees sincerely. However, the frustration among the workforce is growing rapidly. Many employees feel angry about the massive pay gap between Samsung and its main rival, SK Hynix.
Last September, SK Hynix agreed to reform its compensation system after its own union demanded changes. Since that agreement, membership in the Samsung union surged. Choi explained the anger simply: “The chip industry is booming, but those gains aren’t trickling down to us. That’s why we’re fighting.”
This anger is already causing brain drain at Samsung. In just the past 3 months, more than 100 union members quit South Korea’s biggest employer. They left for rival firms like SK Hynix, which recently removed its bonus cap and agreed to dedicate 10% of its operating profit to an employee bonus pool.
The Samsung union wants a 7% increase in base wages. They also demand that the company scrap its current rule that caps performance pay at 50% of a worker’s annual base salary. Furthermore, the union wants a new bonus pool based directly on the company’s operating profit. They argue that the current criteria for handing out bonuses are outdated and completely opaque.
Currently, about 90,000 unionized workers, out of Samsung’s total South Korean workforce of 125,000, are eligible to cast their ballots. The voting runs until this Wednesday. The Samsung Electronics Labour Union has roughly 66,000 members, and 51,000 of them work directly in the crucial chip division.
Samsung is incredibly profitable right now. The company posted record profits in the fourth quarter of 2025. Financial analysts expect the company’s annual operating profit to more than quadruple this year, potentially exceeding 200 trillion won, or roughly $134 billion.
Earlier this month, Samsung sent an internal memo to its employees. The company claimed it tried to reach a 2026 wage deal by offering unprecedented compensation proposals, including a 6.2% pay increase and special bonuses. A company official argued that removing the bonus cap entirely would make it too hard for Samsung to afford future investments in new technology.
The official, who asked to remain anonymous, warned about the high stakes of a walkout. “If even a single strike halts production lines and damages trust with customers, it could take years” to recover, the official said.
Samsung workers first walked off the job in 2024. That action happened after Chairman Jay Y. Lee finally promised to end the company’s infamous “no-union” policy back in 2020. Because Samsung blocked unions for so long, business professors note that the management team lacks the necessary experience to handle these modern labor disputes effectively.
The pay gap remains the biggest sticking point. The union provided a clear example: A Samsung chip employee earning a base pay of 76,000,000 won ($50,800) would receive exactly 38,000,000 won in performance pay for 2025. The union claims a similarly paid employee at SK Hynix would receive more than triple that bonus amount.
Choi noted that other major tech players, like Elon Musk’s Tesla, are actively trying to poach Samsung’s best chip designers with generous job offers. “If we’re number one, we should be treated like number one,” Choi said.
