Samsung Faces Historic Strike Over AI Boom Profit Sharing

Samsung Electronics faces a potential 18-day strike starting May 21, 2026, involving over 45,000 workers, marking the largest labor action in the conglomerate's history. The dispute centers on the distribution of bonuses derived from the global AI boom and memory chip shortage. While Samsung proposed significant bonuses for its 27,000 memory chip employees, the union argues that 23,000 workers in logic chip design and foundry businesses, who have faced recent losses, should receive comparable compensation. This internal division threatens global supply chains for AI data centers, smartphones, and laptops, causing concern among foreign investors and the South Korean government. JPMorgan estimates the strike could reduce operating profits by $14 billion to $20 billion. The conflict highlights tensions within Samsung's diversified semiconductor strategy, contrasting with specialized competitors like TSMC. Experts suggest the complex business structure contributes to valuation discounts and internal conflicts, urging the company to make its foundry business more self-reliant to prevent further talent drain and operational disruptions.