Summary of Key Points
The AI boom has led to a surge in demand for semiconductors, resulting in record profits for Samsung's semiconductor division (with second-quarter operating profit expected at 89.4 trillion Korean won, an increase of 1810% year-over-year). However, the distribution of bonuses is severely imbalanced: employees in the semiconductor department receive up to 600 million Korean won (approximately 2.68 million RMB), while those in non-semiconductor departments (such as mobile phones and home appliances) only get 6 million Korean won (about 26,800 RMB), creating a difference of nearly 100 times. This has sparked intense internal conflicts. Unions in non-semiconductor departments are planning protests, and there is dissatisfaction among different sub-departments within the semiconductor division (memory vs. wafer manufacturing). Some key employees have even switched to competitor SK Hynix. This incident highlights a common issue in the AI era regarding corporate bonus distribution—should excess profits be allocated to the directly profit-generating departments or to all employees? Or should they be used to benefit society?
Detailed Analysis
1. The AI Boom: Why Is Samsung's Semiconductor Division Suddenly Making So Much Money?
AI is like a "big eater of chips"—training large models and running AI applications require massive computing power, which relies on storage chips (such as DRAM memory and NAND flash). As the global leader in storage chips, Samsung has caught this "super cycle." In the first quarter of 2026, the semiconductor division contributed 93.9% of the company's profits, and its second-quarter profits surpassed those of NVIDIA, making it the company with the highest quarterly profit globally. Simply put, as AI becomes more popular, chip demand soars, and Samsung's semiconductor division reaps the benefits.
2. A 100-Fold Bonus Gap: Where Does the Mislogic in Distribution Lie?
Samsung's bonus system is based on the principle of "whoever earns more gets more." Since the semiconductor division generates most of the profits, bonuses are directly linked to its performance and are distributed in the form of stock over a 10-year period. Non-semiconductor departments (such as those responsible for mobile phones and home appliances) see their profits squeezed by rising chip prices, resulting in only a fixed bonus of 6 million Korean won in the form of stock. The situation is even more unfair within the semiconductor division: the profitable memory department receives bonuses equivalent to 607% of their annual salary, while the loss-making wafer manufacturing department gets only 50%-100%. Employees complain, "It's not that I'm not capable; it's just that I chose the wrong department!"
3. Employee Anger: Protests and Job Transfers—How Did the Conflict Intensify?
- Union Protests: The union of the DX department plans a protest on July 16th, aiming to gather 2,000-3,000 people to criticize the company for "neglecting non-semiconductor departments."
- Key Employee Turnover: As of May, more than 200 key engineers have left Samsung to join SK Hynix. Even employees within the semiconductor division (wafer manufacturing) are considering leaving, saying, "We came with dreams of working in wafer manufacturing, but now we're left penniless."
- Comparison with Competitors: SK Hynix abolished bonus limits years ago and distributes 10% of its annual profits to all employees. Some of their employees receive three times the bonuses at Samsung, which adds to the dissatisfaction among Samsung's workforce.
4. Samsung vs. SK Hynix: How Do Their Bonus Systems Differ?
SK Hynix's approach is more equitable. It signed a 10-year agreement with its union in 2025, abolishing bonus limits and distributing 10% of annual profits to all employees. Samsung only agreed to distribute 10.5% of the semiconductor division's profits to chip employees just before a major crisis, focusing mainly on the profit-generating department and ignoring the contributions of other departments. It's like a family dinner where the eldest child gets all the meat while the younger ones can only drink soup—how can this not lead to conflicts?
5. The Big Question in the AI Era: How Should Excess Profits Be Distributed?
Samsung's situation is not isolated. In Silicon Valley, companies like Meta are offering high salaries to attract AI talent, leading to dissatisfaction among existing employees who demand raises. The South Korean president has even suggested implementing a "citizen dividend," suggesting that some of the profits from AI companies be distributed to all citizens (given that AI benefits rely on the country's long-term industrial foundation). The core questions are:
- At the corporate level: Should excess profits be given only to the directly profit-generating departments or should they be shared more broadly across the organization, including non-semiconductor departments?
- At the societal level: Should the benefits of the AI industry be returned to society (given that infrastructure and education rely on public investment)?
For Samsung, failing to address this issue could result in a loss of key employees or increased labor tensions that could impact the South Korean economy (Samsung accounts for one-quarter of Korea's exports). If the "cake" of profits is not distributed fairly, even a large one can become a source of conflict.
Conclusion
The wealth generated by AI tests companies' ability to distribute resources wisely. Samsung's experience shows that in times of technological change, focusing solely on who creates profits while ignoring fairness and collaboration can lead to internal divisions. Balancing efficiency and fairness is a critical lesson for all companies in the AI era.