Who Owns the Fruits of the AI Boom? — Cracks in the Semiconductor Industry Reflected by Samsung's Largest Strike

In the semiconductor industry supporting the global AI boom, a symbolic conflict is currently unfolding.

The stage is set at Samsung Electronics in South Korea. As the spread of generative AI leads to a rapid increase in demand for memory and high-performance semiconductors for data centers, the company's labor union is planning a massive strike from May 21, 2026, for 18 days. Over 45,000 workers are expected to participate, and if implemented, it could become the largest strike in Samsung Group's history.

This issue is not merely about wage negotiations. It raises the question of who should receive the profits in an era where AI boosts corporate value and semiconductor manufacturers reap enormous profits.

The Spark: "Distribution of the AI Boom"

Samsung Electronics is one of the world's largest memory semiconductor manufacturers. The growing demand for memory, essential for AI servers, smartphones, PCs, and data centers, has been a significant tailwind for the company.

However, this tailwind has not been evenly distributed within the company.

According to reports, Samsung has proposed a very high bonus level equivalent to 607% of annual income for about 27,000 employees in the memory division. Meanwhile, employees involved in logic semiconductors and foundries were reportedly offered bonuses of around 50-100%.

This disparity has sparked strong opposition from the labor union.

The union's argument is clear: memory alone does not support AI chips. AI semiconductors are only realized through the complex collaboration of many departments, including logic design, foundry, substrates, packaging, and manufacturing. If large rewards are concentrated only in profitable divisions, morale in other departments will decline, leading to talent outflow.

Particularly, the foundry and system LSI divisions have faced intense competition in recent years. The strength of Taiwan's TSMC, the difficulty of developing advanced processes, and delays in acquiring customers have all contributed to Samsung's logic business not being as profitable as its memory business. Still, Samsung has pursued a growth strategy as a "comprehensive semiconductor company" offering everything from memory to logic and foundry.

This conflict can be said to have exposed the weaknesses of that comprehensive strategy.

"Meritocracy" or "Collective Contribution"?

The company's logic leans towards meritocracy.

The profitable memory division is richly rewarded. Divisions with ongoing deficits or low profitability are kept at an appropriate level. From a business unit perspective, this seems like a rational approach.

On the other hand, workers believe it is unfair for only a part to benefit when they are contributing to the company's overall AI-related growth.

This conflict highlights a new challenge in corporate management in the AI era. Even if profits surge due to AI-related demand, how should those profits be evaluated? By division or by the entire company? Short-term profits or future strategic value?

In Samsung's case, the memory division is currently generating profits. Meanwhile, the foundry and logic divisions may not be as profitable, but they are essential areas for long-term success in the AI semiconductor market. If the pay gap widens here, necessary talent may leave, potentially undermining future competitiveness.

In fact, some employees are reportedly considering moving to competitors like SK Hynix or Micron. SK Hynix has shown strong presence with high-bandwidth memory for AI, and its compensation is an attractive comparison for Samsung employees.

What Happens if the Strike Becomes a Reality?

The reason this strike plan is drawing attention is that Samsung is not just any company.

The company is a core part of the South Korean economy and is deeply integrated into the global semiconductor supply chain. Memory semiconductors are indispensable for AI data centers, smartphones, PCs, and cloud services. If Samsung's production is significantly delayed, the impact will not be confined to South Korea.

JP Morgan estimates that the impact of the strike on Samsung's operating profit could reach 21 trillion to 31 trillion won. The loss of sales opportunities could also be in the trillions of won. Of course, the actual loss will vary depending on the number of participants in the strike, the degree of production adjustment, inventory levels, and contract terms with customers. Nevertheless, it is a scale sufficient to make investors and customers nervous.

The South Korean government has also expressed strong concern. Semiconductors are a pillar of South Korean exports, and chaos at Samsung could affect exports, exchange rates, tax revenue, and capital outflow. Samsung has also warned that failing to deliver to customers would significantly damage trust.

In other words, this labor-management conflict is not only a wage negotiation but also a risk to the national economy and the global supply chain.

What the Union Demands

The union's demands are not simply about "paying more."

At the core is the transparency and institutionalization of the performance-based pay system. The union is calling for a system that allocates a certain percentage of annual operating profit as a bonus pool and the removal of the bonus cap set at 50% of annual income. The idea is that if the company's performance is growing due to the AI boom, those results should be predictably returned to employees.

On the other hand, the company is cautious about uniform profit distribution. Institutionalizing high bonuses without considering the profitability and investment burden of each business could result in a loss of managerial flexibility. Particularly in the foundry and logic divisions, continuous investment is necessary, and some see the profits from the memory division as supporting that investment.

The conflict here is not just about short-term amounts. It is about the corporate view of whether the company is a "collection of achievements by division" or a "community that shares risks and profits across the entire company."

Reactions Spreading on Social Media

The issue is also attracting significant attention on social media.

On X, posts expressing concern about the impact of the strike on memory prices and AI chip supply are prominent, especially among semiconductor and investment-related accounts. If Samsung's production is disrupted even temporarily, there is a view that the supply-demand balance for DRAM and HBM will tighten further, affecting AI server-related companies and cloud operators.

From an investor perspective, there are voices focusing on the decline in Samsung's stock and its impact on market capitalization. More than the labor dispute itself, the risk is perceived as "supply uncertainty at a company central to the AI market."

On the other hand, there are many sympathetic reactions towards the workers. If companies are making record profits due to the AI boom, it is only natural that the technicians and manufacturing staff on the ground should also receive adequate returns. Particularly, there is criticism that the significant bonus disparity based on department, despite working in the same factory or similar processes, is a "system that creates division."

In Reddit's tech community, there is discussion about the possibility of Samsung's strike driving up memory prices and leading to supply constraints for AI semiconductors. From a consumer perspective, there are comments expressing concern about the impact on PC memory and SSD prices.

In South Korean social media and news comment sections, reactions are more divided. While some view the union's demands as a "just distribution of AI profits," others criticize the demands for excessively high performance pay as being out of touch with the average worker's perspective. Considering the overall impact on the South Korean economy, there is a strong opinion that the strike should be avoided.

Thus, the discourse on social media is broadly divided into four categories: worker support, supply chain risk, investor anxiety, and criticism of excessive demands.

The "Invisible Labor" of the AI Era

What makes this dispute symbolic is that while the AI boom is often narrated as a story of "software" or "models," it has visualized the vast physical infrastructure and human labor behind it.

Running generative AI requires massive data centers. These include GPUs, HBM, DRAM, SSDs, power supplies, cooling equipment, and network devices. Making semiconductors involves designers, equipment engineers, materials technicians, quality control personnel, and manufacturing operators.

The more AI is talked about as a symbol of "automation" and "efficiency," the less visible the workers at its foundation become. However, Samsung's strike crisis has once again demonstrated that the AI economy cannot exist without human labor.

The struggle over the fruits of the AI boom may spread to other companies and industries in the future. It's not just semiconductors. There is a lot of labor surrounding the AI industry, including data center construction, power supply, cloud operations, AI model development, and content creation. When corporate value is boosted by AI, how will shareholders, executives, technicians, manufacturing sites, and social infrastructure providers share the profits? This will become an unavoidable issue.

Samsung's "Comprehensive Strength" is Being Tested

Samsung is a giant company encompassing everything from memory, logic, foundry, smartphones, to home appliances. While this comprehensive strength is an advantage, it also becomes a challenge in situations like this where profit disparities between divisions widen.

Looking only at the memory division, it is a winner riding the tailwind of AI demand. However, as a comprehensive semiconductor company that includes logic and foundry, it needs to retain talented individuals in deficit or growing divisions.

If talent flows out here, Samsung's vision of being a "semiconductor company offering everything from memory to logic" will be shaken. Conversely, if the company largely accepts the union's demands, similar demands may be repeated in future labor negotiations. Neither choice offers an easy solution.

The Social Responsibility of AI Companies is Being Questioned

The conflict at Samsung is questioning new responsibilities for companies in the AI era.

As stock prices rise and profits increase due to the AI boom, executives and investors benefit. Meanwhile, if workers on the ground feel "left behind," internal divisions within the company will emerge. Moreover, in core industries like semiconductors, such divisions directly connect to the global supply chain.

Companies need to clearly explain not only their growth through AI but also how they will reward the talent supporting that growth. Balancing transparency in compensation systems, fairness, future investments, and performance evaluation by business will become a management challenge in the AI era.

Samsung's strike crisis will not end as a labor dispute of a single company behind the AI boom. It is a question directed at the entire global technology industry about who receives the wealth created by AI.

Source URL

InfoMoney: Published in Portuguese, reporting on Samsung's AI boom, strike plan, internal divisions, and bonus disparities.
https://www.infomoney.com.br/business/na-samsung-boom-global-de-ia-gerou-ameaca-de-greve-e-divisoes-profundas/

Reuters: Primary report on Samsung's 18-day strike plan, expected participation of over 45,000, bonus disparities between memory and logic/foundry divisions, and JP Morgan's loss estimates.
https://www.reuters.com/business/world-at-work/samsung-global-ai-boom-spurred-looming-strike-deep-divisions-2026-05-15/

Reuters: Report on Samsung urging the union to resume negotiations, mediation by the Korean Labor Commission, the proportion of semiconductors in Korean exports, and government concerns about avoiding the strike.
https://www.reuters.com/business/world-at-work/samsung-electronics-urges-union-resume-talks-strike-threat-looms-2026-05-14/

Reuters: Article reporting on the protest in front of the Pyeongtaek plant in April 2026 and the union's announcement of reduced production during night shifts.
https://www.reuters.com/sustainability/sustainable-finance-reporting/samsungs-chip-output-dropped-amid-workers-rally-union-says-2026-04-24/

Pressian: Report by Korean media on the union's policy of "strike first, dialogue after June 7" announced in its SNS public relations office, the 18-day strike plan, and expected number of participants.
https://www.pressian.com/pages/articles/2026051512551684824

Bloomberg: Article reporting on the large rally in Pyeongtaek in April 2026, the number of participants announced by the police and organizers, and the union's demand for a 15% distribution of operating profit.
https://www.bloomberg.com/news/articles/2026-04-23/samsung-rally-draws-30-000-to-demand-greater-share-of-ai-profits

Reddit r/technology: Used to confirm reactions in the tech community regarding Samsung's strike and its impact on memory prices.
https://www.reddit.com/r/technology/comments/1tcrfk9/south_koreas_ai_chip_boom_sparks_labor_dispute_at/

Example X Post: Used to confirm reactions from investment and market accounts concerned about the impact on the semiconductor supply chain and memory supply-demand.
https://x.com/briefing_block_/status/2054743503402569851