Samsung Electronics faces an escalating standoff with two of its unions, who demand a 15% share of operating profit and a 7% wage hike after the semiconductor arm posted a record $32.6 bn first‑quarter profit. Workers warned of an 18‑day strike beginning May 21 if the chipmaker refuses, threatening to hit global memory‑chip supplies at a time of tight inventory.

The dispute follows a surge in demand for high‑bandwidth memory chips that power AI data centres, propelling Samsung’s market value above $1 trillion. While management has offered roughly 13% of profit for bonuses, unions argue the payout must be codified in contracts and applied annually. Samsung’s “One Samsung” model, which blends chipmaking with consumer‑electronics divisions, complicates any profit‑splitting formula.

Analysts estimate an 18‑day walkout could cost the group Won10‑17 tn in direct losses, with knock‑on effects for 1,700 suppliers and the broader Korean economy, which attributes half of its 1.7% Q1 growth to chipmaking. With rival SK Hynix already earmarking 10% of profit for workers, Samsung’s resolution will shape labour standards across the industry.