Samsung’s tentative profit-sharing deal with its memory division has triggered internal conflict, halting decision-making on major AI chip projects and disrupting packaging operations critical to HBM4 production.
Bonus Disparity Fuels Resentment
The agreement allocates approximately 600 million won (~$400,000) per employee in Samsung’s memory division, while workers in the Device eXperience (DX) division—covering smartphones, TVs, and appliances—receive roughly 6 million won (~$4,000). The deal reserves 10.5% of the semiconductor division’s operating profit as stock-based bonuses, plus 1.5% in cash, but only memory unit staff benefit from the largest payouts.
Non-memory employees have pushed back aggressively. A smaller union representing DX workers filed a court injunction this week to block the chip-dominated union from handling collective bargaining. Internal message boards show strong opposition, with many viewing the deal as unfairly favoring the memory unit.
Operational Disruption Spreads
Work negligence has become widespread in Samsung’s foundry and Test & Package (TSP) divisions, which handle back-end packaging and testing essential for high-bandwidth memory (HBM). Meetings across non-memory and shared business units are being canceled. One source told *Seoul Economic Daily* that “decision-making on major projects has come to a complete halt.”
The TSP disruption is particularly consequential. Samsung uses an integrated turnkey system routing chips through its own foundry and packaging lines. Any slowdown directly constrains HBM output as all three major memory producers race to fulfill hyperscaler orders. Another source warned that continued negligence on production and verification lines could damage customer relationships and jeopardize delivery commitments.
Strategic Risk and Voting Timeline
Samsung’s semiconductor CEO, Jun Young-hyun, urged employees in an internal memo to move past the conflict, but the dispute now poses a tangible risk during what *Bloomberg* estimates will be a record year, with 2026 operating profit projected at 330 trillion won (~$218 billion). Union members began casting electronic ballots on Friday, with voting open through May 27. Ratification requires participation from more than half of eligible members and a majority yes vote, but approximately 43,000 non-memory union members within the DS division could swing the outcome.
Forward-Looking Significance
The internal rift threatens Samsung’s ability to deliver HBM4 to Nvidia’s next-generation Rubin AI accelerators on schedule. If unresolved, the conflict could erode customer trust, delay critical revenue from AI memory sales, and undermine Samsung’s competitive position against SK Hynix and Micron. The outcome of the union vote and subsequent negotiations will determine whether Samsung can restore operational cohesion in time to capitalize on the AI memory boom.
