Samsung workers set for $400,000 bonus after deal to share AI profits - FT

Samsung Electronics has reached a provisional agreement with its largest labor union to distribute substantial bonuses to employees in its semiconductor division, averting a potential strike. Under the terms of the deal, the company will allocate 10.5% of operating profits for performance bonuses, with caps on individual payouts removed. Based on projected 2026 operating profits, this could result in an average bonus of approximately $339,000 to $396,000 per employee. The bonus will be distributed in the form of stock, with an additional 1.5% in cash, and the program is set to continue for 10 years, contingent on meeting profit targets.

Samsung’s semiconductor division has experienced a surge in profitability due to the global artificial intelligence boom, which has driven demand for advanced memory chips such as HBM. In the first quarter of 2026 alone, the company reported profits of $39 billion. The union, which had initially sought a 15% profit-sharing arrangement, will vote on the deal by May 28. If approved, bonuses are expected to be distributed in early 2027.

The agreement reflects a broader trend in South Korea’s semiconductor industry, where companies are rethinking how to distribute AI-driven profits. SK Hynix, a key competitor, had previously committed to allocating 10% of annual operating profits to employee bonuses. The high-value payouts are reshaping labor dynamics, intensifying competition for skilled workers and influencing career decisions within the sector.