The deal to a avert a strike at Samsung’s chipmaking operation that was announced last week has been approved, according to Bloomberg. There will be no strike.
Two weeks ago, the negotiating process had broken down and a strike looked imminent. Repercussions from a work stoppage may have been felt globally. Since Samsung and its chief Korean competitor in this area, SK Hynix are two of three companies that make the high bandwidth memory (HBM) that frontier AI companies depend on, demand is expected to outstrip supply until well into next year—or even later—and noticeable supply chain disruptions in HBM and other components were very much on the table thanks to the potential strike.
A bonus increase last year at SK Hynix had set events at Samsung in motion. Union activity increased after Samsung workers learned about a union deal that purportedly meant similar SK Hynix workers were eligible for six-figure bonuses in 2025. Samsung has now given workers a similar deal—one that Bloomberg estimates will earn 57,302 Samsung chip workers an average bonus of 513 million won, or $340,000.
Yonhap News Agency’s estimate is slightly higher: “600 million won for each of the 28,000 employees in the chip division.”
That’s just shy of $400,000 each.
Samsung’s earnings are purportedly the 19th highest in the world. According to Bloomberg, this year it is expected to become the second highest company in a ranking of operating profit after Saudi Aramco. Bloomberg also says shares were up 8% at the time of the deal’s approval.
According to AJP News Agency, the deal also includes a 6.2% raise, along with a home loan option.
73.7% of membership voted to approve the deal, according to AJP. That agency also notes that as of Wednesday morning, shares in Samsung had “hit new heights,” and were up 6.7%.