Samsung workers win 10.5% of AI chip profits after strike threat

Samsung will give 48,000 semiconductor workers 10.5% of the division’s operating profit as bonuses, settling a strike threat sparked by record Q1 earnings.

The new profit-sharing plan replaces a cap that limited bonuses to 50% of annual pay. It was approved by 75% of 62,000 union members, who returned to work Monday. Samsung shares climbed 7% after the deal.

Last quarter, Samsung’s chip division earned $35.8 billion in operating profit, or 94% of the company’s total. The 10.5% bonus pool equals about $78,000 per worker for Q1 alone. If earnings hold, that would be $312,000 per worker annually.

The agreement follows Q1 revenue growth of more than 800%, which surpassed all of 2025’s revenue. Before the deal, 40% of Samsung’s South Korea-based staff were set to strike.

Samsung makes up 16% of South Korea’s GDP and leads the global chip market. Rival SK Hynix updated its bonus structure eight months ago amid a fight for engineers.

“The semiconductor industry is now facing a war to secure global talent,” Samsung’s union said last month. “Foreign companies are luring our engineers with exceptional offers.”