Historical Samsung strike is nigh: pay raise talks failed, PM says it should be avoided "under any circumstances"

You're either living under a rock or your pockets run really deep if you haven't noticed how much more expensive tech components – especially memory chips – have gotten in the last year.

The RAMpocalypse, as some call it, is great for certain companies (or for some divisions in those companies) – while you and I have to pay $100 more for a vanilla flagship like the Galaxy S26, they pocket fat checks. AI projects and data centers need chips and the price has been going one way: up.

In the realm of memory chip making, Samsung is among the biggest players out there. But if you think that all Samsung workers are going home with more money after each shift ends, think again.

They're not… and that could lead to a huge, historical Samsung strike, since their demands haven't been met at all in the latest round of discussions.

Failed talks

As Reuters reports, the talks between the unionized workers and the execs of Samsung Electronics have just failed.

An eventual strike could be disruptive not just for Samsung itself, but for the whole South Korean economy as well. In other words, matters are serious.

There are tens of thousands (more than 90,000) of Samsung workers that have a union membership. That's more than 70% of Samsung's total South Korean workforce. If 50,000 of those go on an effective strike, supply chains would be disrupted pretty quickly.

In the past two days, the government has hosted mediated talks, but to no effect.

Even Prime Minister Kim Min-seok had to step in and instruct the government to "closely manage" the situation, since the national economy is at stake.

How serious is it?

Well, last April, semiconductors accounted for 20% of South Korea's exports. This year, chip exports in April account for 37% of all exports. Brother, business is booming!

The AI boom is far from over and mere days ago, Samsung became the second Asian company (after TSMC) to ​have a market value of more than $1 trillion.

That's why PC Kim Min-seok said that "proactive support to ensure dialogue between the union and management can continue so this doesn't ​lead to a strike under any circumstances" is much needed.

What do Samsung workers want, exactly?

Money – but it's not about a single bonus.

Samsung workers are demanding major changes to the company's bonus structure. They say compensation has failed to keep pace with the explosive growth of the AI-driven chip market.

The union is particularly unhappy with what it describes as a "huge gap" in bonus pay compared to rival SK Hynix, whose employees secured more favorable terms last year.

According to union representatives, Samsung's latest proposal only included a one-time performance payment for 2026, without any long-term guarantees or broader reform of the compensation system. Workers are also pushing for the removal of the current bonus cap, which limits payouts to 50% of annual base salary.

In addition, the union wants 15% of Samsung's annual operating profit to be allocated toward bonuses. Another major issue is transparency, as employees say the company has not clearly explained how bonus calculations are determined.

Samsung, meanwhile, has argued that permanently tying bonuses to operating profit could reduce the company's flexibility during weaker periods in the semiconductor cycle.

Are SK Hynix workers better off?

Meanwhile, SK Hynix (which has also benefited heavily from the AI boom) agreed to compensation reforms demanded by its union, including the removal of the cap on bonus pay that Samsung employees are now also trying to eliminate.

That agreement has become a key talking point for Samsung workers, who see it as proof that better terms are achievable within the same industry.

Sounds pretty logical, doesn't it?

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