Samsung bonus dispute threatens AI memory work as workers push back over huge payout gap

Samsung’s tentative labor deal has avoided an 18 day strike for now, but it has also created a new problem inside the company. A major gap in proposed employee bonuses is reportedly causing resentment across several divisions, with some meetings being canceled and work slowing in areas tied to chip testing and packaging.

The disagreement centers on how Samsung plans to share profits from its booming semiconductor business. Under the proposed deal, employees in the memory division could receive bonuses of about 600 million won, or roughly $400,000. Workers in the DX division, which covers smartphones, TVs, and home appliances, would receive about 6 million won, or around $4,000.

The dispute matters because Samsung needs smooth HBM production for Nvidia’s next AI chips

The anger is not limited to office complaints. According to the report, work negligence has become more common in Samsung’s foundry and TSP divisions. TSP handles test and packaging work, which is important for high bandwidth memory production. That makes the disruption especially sensitive because Samsung is trying to ramp up HBM4 for Nvidia’s next generation Rubin AI accelerators.

The bonus gap is large enough to create a serious morale problem. Memory workers are set to benefit the most because their unit is driving a major part of Samsung’s profit recovery. But other employees argue that the wider company also supports Samsung’s success and should not be left with a payout that is only a small fraction of what memory workers receive.

The proposed deal allocates 10.5 percent of the semiconductor division’s operating profit as stock based bonuses, with another 1.5 percent in cash. That structure has also triggered legal and union challenges. A smaller union representing DX employees has filed a court injunction to block the larger chip dominated union from handling collective bargaining. Another shareholder group has threatened legal action, arguing that the profit linked bonus structure may require shareholder approval under Korean law.

The timing is difficult for Samsung. AI memory is one of the most important growth areas in the semiconductor industry, and Samsung is competing with SK hynix and Micron for major customer orders. Any slowdown in packaging, testing, or verification could hurt delivery schedules and weaken customer trust.

One source cited in the report warned that continued negligence on production and verification lines could damage relationships with customers. Another said decision making on major projects had come to a complete halt. If true, that would be a serious problem for a company trying to regain strength in advanced memory.

The final outcome is not settled yet. Union members began electronic voting on Friday, and voting will continue until May 27. Ratification requires more than half of eligible members to participate and a majority yes vote. Around 43,000 non memory union members inside the DS division could influence the result, especially if opposition remains strong.

Samsung’s semiconductor chief Jun Young hyun has reportedly urged employees to move past the conflict, but the resentment shows how hard it can be to reward one high performing division without damaging morale elsewhere.

For Samsung, the issue is now bigger than bonuses. The company needs its memory, foundry, packaging, and device teams to keep working smoothly while AI demand is at a peak. If the payout dispute continues to slow internal decisions, it could affect Samsung’s ability to meet AI memory commitments at one of the most important moments for the business.