Samsung Employees Revolt: Many Leave to Join SK hynix, 40,000 Demonstrate

Samsung continues to dominate the memory market thanks to strong demand for DRAM chips, a key component for servers dedicated to artificial intelligence. The growth in demand has driven the company towards exceptional financial results, with a forecast for profit increases of up to eight times compared to previous periods.

However, this economically positive scenario contrasts with a complex internal situation. According to reports by Reuters, in South Korea, around 40,000 workers have started a protest in front of a major production complex of the company. At the center of the demands are specific requests from the union: a 7% increase in the base salary, a revision of the bonus system, and greater clarity in the criteria for calculating wages.

The comparison with direct competitor SK hynix weighs significantly. According to the Samsung Electronics Labor Union (SELU), employees of the rival have seen their bonuses grow by over two-thirds. This gap has fueled discontent and contributed to a rise in union membership, which now counts approximately 90,000 members, or over 70% of the company’s South Korean workforce.

A contribution to this contrast undoubtedly comes from the announcement of the aforementioned bonuses for SK hynix employees. By 2026, production bonuses of about €500,000 per employee are expected, while analysts believe that these bonuses could exceed €700,000 for the next year. Even in the case of the main competitor, the result was achieved through a union battle.

In this regard, among the main requests of the SELU is also the allocation of 15% of annual operating profits in the form of bonuses, in addition to the elimination of the current cap set at 50% of the base salary. Workers emphasize that the current system does not reflect the economic results achieved by the company, especially during a phase of strong market expansion in AI.

Speaking to Reuters, a logistics employee at Samsung and protester stated: "In reality, many employees are leaving to join SK hynix. After all, over 90% of employees work for the salary, and the contribution gap has become so wide that it pushes for their transfer."

Samsung has expressed its intention to find a quick agreement, aware of the industrial implications. Even a single production interruption could have significant consequences, especially in the current scenario where DRAM availability is extremely limited, and a single missed supply could pave the way for competition.

In the event that negotiations do not lead to tangible results, unions have already planned an 18-day strike starting May 21. Such an action would represent a challenge far from simple for the company.