Unprecedented Strike by 45,000 Samsung Workers Over AI Profits Set to Begin
Nearly 45,000 Samsung Electronics workers are set to walk off the job on Thursday, May 21, 2026. This move marks what could be the largest work stoppage in the history of the semiconductor industry. The 18-day strike threatens to disrupt global AI supply chains at a critical chokepoint, particularly affecting high-bandwidth memory chip production essential for Nvidia’s AI hardware.
Negotiations between Samsung Electronics’ labor union and management over wage increases and bonus structures have collapsed. The National Samsung Electronics Union is demanding a formalized 15% share of annual operating profits, removal of a 50% cap on performance bonuses, and a 7% base wage increase. This comes as rival SK Hynix has been paying profit-sharing bonuses averaging $460,000-$477,000 per worker in 2026, with projections approaching $900,000 next year. In contrast, Samsung paid no performance bonuses in 2024 during the memory downturn, and despite record Q1 2026 operating profit, workers received no payout.
The potential economic impact is staggering. The union estimates the strike could cost Samsung approximately 30 trillion won ($20 billion), while JPMorgan analysts project that meeting union demands in full could reduce 2026 operating profit by 7%-12%. South Korea’s government is considering invoking emergency arbitration to halt the strike, as Samsung Electronics represents 12.5% of the country’s GDP. A Korean court issued a partial injunction on Monday limiting the scope of the strike, but union leaders vow to proceed if Samsung doesn’t present a better offer.
Source: Fortune