Samsung’s chip workers are set to receive eye-popping bonuses worth up to $400,000 this year. This comes after a tense wage negotiation that narrowly avoided an 18-day strike.

The deal covers roughly 28,000 employees in Samsung’s memory chip division, the company’s cash cow amid the AI boom. Bonuses will be paid in company stock over a decade, contingent on sustained profits through 2035.

Samsung agreed to allocate 10.5 percent of its annual operating profit to employee bonuses. The chip division claims 40 percent of this pool, reflecting its outsized contribution to the company’s profit surge.

Not everyone is pleased. Workers outside the chip business—those in smartphones, TVs, and appliances—face drastically smaller payouts, averaging just $4,000. This has sparked fury and division within Samsung’s workforce.

The smaller union representing non-chip workers has challenged the bonus vote in court. They argue exclusion from the vote and the lopsided bonus structure unfairly favor chip employees.

This legal challenge could delay or overturn the bonus plan. The union claims the deal improperly isolates chip profits for chip workers, ignoring the company’s broader ecosystem.

Meanwhile, shareholders have voiced opposition. Some threaten legal action, citing a lack of shareholder approval for the massive bonus scheme. They contend the payout falls outside standard labor negotiations.

The backdrop to this drama is Samsung’s booming semiconductor business. Fueled by AI demand, the memory chip division’s profits are expected to hit over $133 billion between 2026 and 2028. This justifies the outsized bonuses, at least on paper.

But the consumer electronics divisions have struggled recently, losing ground and profits. Their workers see the bonus gap as a growing wedge within Samsung’s culture and morale.

Samsung’s largest union secured nearly 74 percent approval for the deal. Yet, the non-chip union’s support barely cracked 21 percent. The company now faces the delicate task of balancing massive rewards for its star division without fracturing its overall workforce.

The vote closes soon, but the fallout is already shaping Samsung’s labor landscape. The company dodged a strike but may face more discord—and legal battles—as it tries to ride AI’s wave without alienating its broader team.