Over 47,000 Samsung Electronics workers are planning an 18-day strike after bonus negotiations collapsed, potentially disrupting memory chip production amid ongoing shortages.
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<img alt="Samsung Electronics Co. workers attend a rally ahead of a strike, scheduled to take place from May 21, outside the company's semiconductor plant in Pyeongtaek, South Korea, on Thursday, April 23, 2026. Samsung's labor union wants 15% of operating profit be handed to chip-division employees. " data-caption="Samsung Electronics workers attended a rally outside the company's semiconductor plant in Pyeongtaek on April 23rd, ahead of the planned strike. | Photo by SeongJoon Cho/<em>Bloomberg</em> via Getty Images" data-portal-copyright="Photo by SeongJoon Cho/<em>Bloomberg</em> via Getty Images" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/05/gettyimages-2272034850.jpg?quality=90&strip=all&crop=0,0,100,100" />
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Samsung Electronics workers attended a rally outside the company's semiconductor plant in Pyeongtaek on April 23rd, ahead of the planned strike. | Photo by SeongJoon Cho/<em>Bloomberg</em> via Getty Images </figcaption>
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<p class="has-text-align-none">More than 47,000 Samsung Electronics workers are gearing up for an 18-day strike after bonus payment negotiations between the company and its union collapsed. The strike is set to start on Thursday and will be limited to Samsung's domestic chipmaking plants, raising concerns around the already constrained production of memory chips amid the ongoing shortage.</p>
<p class="has-text-align-none">While the union had agreed to mediation proposed by South Korea's National Labor Relations Commission (the details of which have not been made public), management at Samsung Electronics rejected the deal without explanation, <a href="https://asia.nikkei.com/business/tech/semiconductors/samsung-union-says-strike-to-go-ahead-after-mediation-efforts-fail?utm_campaign=IC_one_time_free&utm_medium=email&utm_source=NA_newsletter&utm_content=article_link&del_type=3&pub_date=202605201158000900&seq_num=6&si=__MERGE__user_id__MERGE__"><em>Nikkei Asia</em></a><em> </em>reports.</p>
<p class="has-text-align-none">As part of its demands, the Samsung unio …</p>
<p><a href="https://www.theverge.com/tech/934432/samsung-electronics-strike-memory-chip-supply">Read the full story at The Verge.</a></p>
# Samsung workers set to strike at worst possible time
Source: [https://www.theverge.com/tech/934432/samsung-electronics-strike-memory-chip-supply](https://www.theverge.com/tech/934432/samsung-electronics-strike-memory-chip-supply)
[](https://www.theverge.com/authors/jess-weatherbed)
Jess Weatherbed
is a news writer focused on creative industries, computing, and internet culture\. Jess started her career at TechRadar, covering news and hardware reviews\.
More than 47,000 Samsung Electronics workers are gearing up for an 18\-day strike after bonus payment negotiations between the company and its union collapsed\. The strike is set to start on Thursday, and will be limited to Samsung’s domestic chipmaking plants, raising concerns around the already constrained production of memory chips amid the ongoing shortage\.
While the union had agreed to mediation proposed by South Korea’s National Labor Relations Commission \(the details of which have not been made public\), management at Samsung Electronics rejected the deal without explanation,[*Nikkei Asia*](https://asia.nikkei.com/business/tech/semiconductors/samsung-union-says-strike-to-go-ahead-after-mediation-efforts-fail?utm_campaign=IC_one_time_free&utm_medium=email&utm_source=NA_newsletter&utm_content=article_link&del_type=3&pub_date=202605201158000900&seq_num=6&si=__MERGE__user_id__MERGE__)reports\.
As part of its demands, the Samsung union is seeking performance bonuses equivalent to 15 percent of the company’s operating profit, and the removal of a cap on bonuses of 50 percent of annual wages\. The negotiations collapse comes during a time of record Samsung profits, having established itself as the world’s largest producer of memory chips\.
Both Samsung and the workers union had been urged by South Korean government officials to reach an agreement in the days leading up to the strike, with Prime Minister Kim Min\-seok having reportedly warned that the government may step in and prevent the strike from going ahead\. South Korean law permits an “emergency adjustment” to be invoked when disputes may harm the economy or daily life\. Samsung is South Korea’s largest company, responsible for about 23 percent of the country’s exports and 26 percent of its total market capitalization, according to[*CNBC*](https://www.cnbc.com/2026/05/20/samsung-electronics-strike-workers-union-wage-talks-shares.html)\.
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- Jess Weatherbed
Samsung reached a tentative deal with semiconductor employees, offering potential bonuses up to $340,000 for memory chip workers amid an AI-driven boom, averting a strike.
Samsung chip engineers are defecting to rival SK Hynix, attracted by larger bonuses fueled by profits from AI memory chips. The talent war highlights the fierce competition in the high-bandwidth memory market.
About 48,000 Samsung Electronics employees are about to strike. The union demands removing the bonus cap and increasing profit sharing. The company proposes a one-time bonus of $340,000 per person but keeping the cap unchanged.
South Korean tech giants, led by Samsung and SK Hynix, have committed over $900 billion to build four new memory fabs, an HBM packaging hub, and AI data centers to address the global memory chip shortage ('RAMageddon') and strengthen the country's AI industry.
South Korean chip workers at Samsung and SK Hynix have become highly sought after in the dating market due to enormous bonuses from the AI chip boom, but this has also intensified concerns about wealth inequality.