Seoul: Tens of thousands of Samsung Electronics employees protested at a large industrial complex south of Seoul today to express dissatisfaction with their pay levels and threatened a prolonged strike, which could disrupt the production of artificial intelligence (AI) chips.
According to Thai News Agency, labor union representatives said up to 40,000 people participated in the rally, making it the largest protest ever at Samsung, a company that has historically had a strict anti-union policy before its first strike in 2024.
The protesters plan to go on strike for 18 days, starting May 21st, if their demands are not met. This could lead to delays in customer deliveries, drive up chip prices, and give competitors a competitive advantage.
The primary cause of employee dissatisfaction stems from the significant bonus disparity compared to key competitor SK Hynix, which has already secured customer favor from Nvidia by delivering high-bandwidth memory for AI chips since the launch of ChatGPT in late 2022. This dissatisfaction occurred despite the popularity of AI technology also contributing to record profits for Samsung.
Additionally, a group of employees wearing black vests who protested at the Pyeongtaek production center stated that many colleagues had resigned to work for SK Hynix. The Samsung Electronics labor union pointed out the inequality, noting that employees in the chip department, with a base salary of 76 million won (approximately 2,050,000 baht), will only receive a bonus of 38 million won (approximately 1,020,000 baht) for 2025, which is less than one-third of the bonus received by employees with the same salary level at SK Hynix.
A Samsung representative stated that the company will continue to strive to reach a wage agreement as soon as possible. However, one Samsung official, speaking on condition of anonymity, commented that a single production disruption caused by the strike could damage customer confidence and may take years to recover, as past studies show that even minor delays in the semiconductor industry can have widespread repercussions on the global supply chain.