Samsung is grappling with a new source of internal tension. This time, it is not about competition in the smartphone or semiconductor markets, but about pay disparities between employees in different departments, which have arisen as a result of the boom in artificial intelligence chips.
On 16 July, employees from the mobile devices, televisions and home appliances divisions are planning to hold a rally outside the company’s headquarters in Suwon. The protest organisers object to the significant disparity in bonuses awarded to employees in the semiconductor division, who recently negotiated a new pay deal.
According to South Korean media, employees in departments not involved in chip production are set to receive company shares worth around 6 million won, or nearly 3,900 dollars. For some employees in the semiconductor business, bonuses could reach as much as 600 million won. Such a large disparity stems from an agreement that linked pay to the record-breaking performance of the memory segment, driven by global demand for AI chips.
According to the Yonhap news agency, between 2,000 and 3,000 people may take part in the protest. The trade union organising the demonstration has around 28,000 members and mainly represents employees working on smartphones and consumer electronics.
The dispute highlights how the artificial intelligence boom is transforming not only the financial performance of chip manufacturers, but also relations within the largest technology firms. Samsung’s memory division is benefiting from growing demand for chips used in data centres and AI systems, whilst other divisions are not sharing in this growth to the same extent.
For investors, the situation is significant in that the protest comes just ahead of the publication of preliminary financial results for the second quarter. Analysts expect Samsung to report an approximately 18-fold year-on-year increase in operating profit, mainly due to an improvement in its semiconductor business.
Although the demonstration is not expected to affect current production, it is yet another sign that business success based on AI can lead to new organisational tensions. For Samsung, the challenge lies not only in maintaining its technological edge, but also in reconciling the interests of teams that are benefiting to varying degrees from the current boom in the semiconductor market.
