Samsung faces 18-day strike over bonus gaps starting May 21
Samsung is about to kick off an 18-day strike starting May 21, with more than 45,000 workers walking out.
The main issue? Huge bonus gaps: Samsung proposed bonuses of up to 607% of annual salary for memory chip workers, while those making AI chips for Tesla and NVIDIA would receive only 50% to 100%.
This has left many feeling undervalued, especially as the company's logic chip division struggles.
Bonus gap risks Samsung's logic leadership
Union leaders say the bonus divide could hurt morale and make it harder for Samsung to keep talent, putting their big goal of leading the logic chip market by 2030 at risk.
The strike might also mess with tech supply chains worldwide since so many companies rely on Samsung's chips.
JPMorgan estimated the strike could impact operating profit by 21 trillion to 31 trillion won ($14.08 billion to $20.79 billion).
Samsung says it's committed to investing in logic chips and warns a long strike could lead to a complete loss of customer trust.
Separately, an internal memo from its board chairman said a strike could trigger capital outflows, lower tax revenue and weaken the won.
All this adds more pressure as rivals like SK Hynix lure away staff with better pay.