More than 45,000 workers plan to walk out on May 21, marking the largest labor action in the company’s history.
Disputes center on how the tech giant distributes the massive profits generated by the current global memory chip shortage.
Samsung offered memory division staff bonuses six times higher than those working in the logic chip and foundry units.
The union argues that logic chip employees, who support clients like Nvidia, deserve equal financial recognition for their essential work.
Internal friction and a potential talent drain now endanger Samsung’s ambitious goal to remain a “one-stop shop” for semiconductors.
Analysts estimate the work stoppage could erase billions from operating profits and trigger significant global market instability.
Company negotiators maintain that bonuses must reflect individual divisional performance, while workers demand a more equitable profit-sharing pool.
Government officials and investors fear the strike might weaken the national economy and damage international manufacturing confidence.
