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Samsung Electronics reached a deal with its labor union, averting a potential strike.
Samsung chip workers are expected to receive AI-fueled bonuses averaging approximately $340,000 as part of a new labor deal.
Samsung's semiconductor unit accounted for more than 90% of the company's profit in the first quarter.
Samsung's valuation surged past $1 trillion last month, placing it in contention with Apple and Nvidia to become the world's most profitable company.
Samsung's memory chip workers are set to receive bonuses that are 100 times larger than those for employees in divisions like smartphones, TVs, and home appliances.
Semiconductors accounted for 36% of South Korea's total exports in the first quarter.
SK Hynix gained a competitive advantage over Samsung by moving faster to supply high-bandwidth memory (HBM) to NVIDIA.
In 2024, SK Hynix posted record revenue and profits.
SK Hynix has committed to distributing 10% of its operating profit as employee bonuses for the next 10 years.
The Bank of Korea warned in an internal report that a strike at Samsung could have a material impact on South Korea's national economic growth.
As part of its new labor deal, Samsung agreed to allocate approximately 12% of its operating profit for bonuses to its chip division workers.
The new bonus structure at Samsung has created deep internal division, with employees in the mobile division feeling demoralized and disconnected from the company.