At Samsung, the global AI boom fuels strike tensions and internal divisions

Friday 15 May 2026 - 10:35

A major labour dispute is unfolding at Samsung Electronics, where tensions over bonus distribution have escalated into the threat of an 18-day strike involving tens of thousands of workers. The conflict highlights growing internal divisions within the South Korean tech giant amid the global artificial intelligence boom.

More than 45,000 employees are preparing for what could become the largest strike in the company’s history, potentially starting on May 21. The action could significantly disrupt the production of memory chips, a key component used in artificial intelligence data centres, smartphones, and laptops.

At the heart of the dispute is a disagreement over compensation. Samsung Electronics has seen strong profits from the global shortage of memory chips and has proposed higher bonuses for workers in its memory division. However, employees in other divisions, particularly those involved in chip design and manufacturing for clients such as Tesla and Nvidia, argue that the pay gap is unfair.

The company reportedly plans to award memory chip workers significantly higher bonuses compared to employees in its foundry and system LSI businesses, which have recently reported financial losses. Union representatives argue that many of these workers operate in similar environments and contribute equally to the company’s strategic role in the AI supply chain.

The growing internal divide has raised concerns among investors and policymakers, as Samsung plays a crucial role in global semiconductor supply networks.