The memory sector is currently experiencing a turbulent period. Beyond the high demand for AI exceeding memory production, scarcity, and manufacturers seeking to profit from the situation, Samsung is also facing a massive employee strike set to commence in a few days. This strike is scheduled for May 21st unless preventive measures are taken. The union is determined to achieve its goals and is now pressuring Samsung over unfair labor practices, revealing that the company paid significantly higher bonuses to employees in the memory sector compared to those in the chip division.
Samsung is renowned for its leadership across various market sectors. In the TV market, it dominates over brands like LG, Sony, and TCL, having acquired Sony’s television division. For years, Samsung led in smartphone sales, though Apple recently surpassed it with the success of the iPhone 17. Crucially, as a memory manufacturer, Samsung also holds a leading market position, which is particularly relevant today given the unprecedented profits being generated in this area.
Union Protests Unfair Wage Gap: Memory Division Employees Received 607% Bonus, Chip Employees Only 50%
Despite Samsung’s strong sales figures and market presence, its profits and stock value have only recently seen a dramatic surge. In just one year, its stock value has quintupled, rising from 56,800 won in May 2025 to its current value of 275,000 won. However, amidst this success, Samsung faces a challenging situation as its union is poised to initiate a strike involving over 45,000 workers starting May 21st, if no resolution is reached.
While the outcome of negotiations remains unknown, the union has highlighted Samsung’s perceived unfairness. In March, it was announced that employees in the memory chip division would receive bonuses equivalent to 607% of their annual salary, while other employees involved in the design and manufacturing of chips and LSI would receive bonuses ranging from 50% to 100%. The union views this as an unjust labor practice that divides its workforce and encourages participation in the strike.
Samsung’s Memory Division Workers to Receive 500 Million Won in Bonuses, Chip Workers 80 Million Won
Employees in the memory division are set to receive 500 million won in bonuses, while those in the chip division will receive 80 million won. According to Samsung’s Vice President and negotiator, Kim Hyung-ro, the disparity in bonuses is attributed to the fact that “without the profits from the memory sector, the chip division would have collapsed,” suggesting that the rewards were justified.
The union did not accept this explanation, and Samsung replaced its negotiator. It is unclear whether an agreement will be reached. The massive strike is scheduled to begin on May 21st and is expected to last 18 days. If it proceeds, it is estimated to cause losses exceeding $2 billion, dealing a significant blow to the industry and likely leading to further increases in RAM prices. Yesterday, a South Korean court sided with Samsung, placing pressure on the union by imposing conditions that, if not met, could result in fines. The outcome will be seen on Thursday: whether workers will fight for their rights or if a return to normalcy will occur.
