Samsung Workers Demand 7% Wage Increase as Semiconductor Profits Surge From AI Boom

The artificial intelligence boom has made semiconductor companies some of the most valuable businesses in the world. Now, workers want a bigger share of the profits.  

According to a report by the Financial Times, unions representing workers at Samsung Electronics are threatening strike action over wages and bonuses tied to the company’s surging semiconductor profits. The unions are demanding a 7% wage increase and want workers to receive 15% of each division’s operating profit as bonuses.  

The Financial Times reported that the unions have threatened an 18-day walkout beginning May 21 if an agreement is not reached. The dispute comes as demand for AI chips continues to soar globally, particularly for high-bandwidth memory (HBM) chips used in AI data centres.  

Samsung’s profits have risen sharply alongside the AI boom. According to the FT, the company reported a record ₩47.2 trillion ($32.6 billion) net profit in the first quarter, nearly six times higher than the same period last year. Most of those profits reportedly came from Samsung’s semiconductor division. On Wednesday, Samsung’s market value also crossed $1 trillion after its shares surged to an all-time high.  

Workers are now demanding a larger share of that growth. Last month, around 40,000 employees reportedly rallied outside Samsung’s factory complex in Pyeongtaek, south of Seoul. One Samsung worker planning to join the strike told the Financial Times they had hoped “the treatment of graduates from the nation’s top engineering universities would improve,” but after observing conditions inside the company, “it is time to take action.”