Samsung is set to pay thousands of workers six-figure bonuses following a new profit-sharing agreement, fueled by the artificial intelligence boom. Approximately 78,000 chip employees will share a bonus equivalent to 10.5% of semiconductor operating profits, largely paid in stocks. Individual payouts are estimated at around 513 million won (£250,000) on average, according to Bloomberg, though Yonhap News suggests they could reach 600 million won (£300,000) — nearly four times the average Samsung salary in 2025.
Deal Reached After Lengthy Dispute
The pay deal was finalized on Wednesday, ending a five-month conflict between the South Korean tech giant and its labour union. The union reported that 74% of the 62,616 workers who voted supported the agreement. Previously, the union had threatened an 18-day strike that could have disrupted global chip supplies.
Eligibility and Exclusions
The bonuses apply to unionized technical staff but exclude subcontractors and employees in the consumer electronics division, which produces Samsung smartphones and laptops.
Record Profits and Market Valuation
Samsung's market valuation recently topped $1 trillion (£740 billion), driven by investor enthusiasm for AI-linked stocks. The company reported an eightfold surge in operating profit to 57.2 trillion won (£28.4 billion), with record revenue of 133.9 trillion won (£66.5 billion). Other chipmakers like SK Hynix and Micron have also seen their valuations exceed $1 trillion, with SK Hynix promising 10% of operating profits for the next decade.
Data Monetization Concerns
In related news, a report by Web3 Foundation revealed that technology and AI firms can earn up to £194,000 from the lifetime data of each UK internet user. The study highlighted how companies collect and monetize personal data from search queries, clicks, online purchases, and social media posts. Bill Laboon, vice president of technical operations at Web3 Foundation, emphasized the privacy implications, noting that many users are unaware their data is being used and monetized.
