Samsung May Pay Nearly $27 Billion to Avoid a Massive Labor Strike

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Samsung may have avoided a major labor strike at the last minute, but it will cost the company billions. Not nearly as much as a prolonged strike would have, especially with Samsung’s chip business booming because of the global AI race, but still an enormous amount. Under a newly negotiated agreement with labor unions, the Korean firm may distribute nearly $27 billion in bonuses to employees in its semiconductor division.

Samsung’s last-minute agreement with labor unions includes a hefty payout

Samsung currently employs around 78,000 people in its semiconductor division, and nearly 50,000 of them threatened to go on an 18-day strike this week. Workers were demanding higher performance bonuses and changes to Samsung’s existing compensation structure, particularly as the company continues to benefit heavily from the global AI boom and soaring demand for advanced memory chips.

After several rounds of failed talks, the two parties finally reached a tentative agreement at the last minute, helping Samsung avoid a potentially disruptive strike. Under the terms of the agreement, the Korean firm will reportedly distribute roughly 40 trillion won ($26.6 billion) in bonuses to workers in its chip business. As reported by Bloomberg, the average payout could reach about 513 million won, or nearly $340,000, per employee.

Reports suggest workers in Samsung’s booming memory-chip business may receive as much as 600 million won. Of course, the actual bonus for each employee will depend on several factors. But workers in Samsung’s chip division look all set to benefit heavily from the ongoing AI boom. An earlier company filing revealed that its employees earned 158 million won on average in 2025. 

The structure of this payout includes 10.5% of semiconductor profits in stock bonuses and another 1.5% in cash. The program could continue annually for the next 10 years if profit targets are met. Employees can sell one-third of their shares immediately, with the remaining shares unlocking gradually over the following two years. The agreement still requires approval from union members, so it’s not all over just yet.

Written by

Sumit Adhikari

Sumit, a life-long Samsung user, is passionate about technology and has been professionally writing on tech since 2017. He’s a mathematics graduate by education and enjoys teaching basic mathematics tricks to school kids in his spare time. Sumit believes in artificial intelligence and dreams of a fully open, intelligent and connected world.

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