Samsung Workers Approve Wage Deal, Avoiding Major Strike and Boosting Chip Supply Confidence

Samsung Electronics workers have approved a new wage agreement, preventing a large-scale strike that could have disrupted global semiconductor supplies and impacted South Korea’s economy. The deal was supported by nearly 74% of union members who participated in the vote, according to the labor union representing the workers.

The agreement ends plans for an 18-day strike involving around 48,000 employees, most of whom work in Samsung’s critical semiconductor division. The strike threat had raised concerns across the global tech industry, especially as demand for artificial intelligence memory chips continues to surge.

Following news of the agreement, Samsung Electronics shares climbed sharply in Seoul trading, rising as much as 8% to hit a record high of 323,000 won. Investors responded positively to the resolution, viewing it as a sign of stability for the company’s chip production and long-term growth.

The wage deal was finalized after government-supported negotiations between Samsung management and union representatives. A key part of the agreement includes a new 10-year special performance bonus program for semiconductor employees. Workers will also receive an average salary increase of 6.2%, reflecting the company’s strong earnings outlook tied to the expanding AI chip market.

Despite the approval, some labor groups opposed the terms of the agreement and attempted legal action to stop the voting process. However, the majority vote confirmed broad support for the final proposal.

The successful resolution removes uncertainty surrounding Samsung’s semiconductor operations at a time when the global chip industry is heavily focused on AI-driven growth. Analysts believe the agreement strengthens Samsung’s position in the competitive memory chip market while helping secure production stability for major technology clients worldwide.