Samsung Electronics is facing a major labor strike as 40,000 union members demand a 15% share of operating profits as bonuses, equating to approximately $400,000 per employee. The union's demands come amid a surge in profits driven by the AI chip boom, with Samsung's Q1 2026 operating profit reaching 57.2 trillion KRW. Management's counteroffer of a 10% profit share was rejected, prompting an 18-day strike starting May 21, which could disrupt global memory chip supply. The strike highlights growing tensions over profit distribution, especially as rival SK Hynix reported record profits and higher bonuses for its employees. SK Hynix's recent quarterly results showed a 72% operating margin, with employees expecting annual bonuses of up to 670 million KRW. The disparity in compensation has led to talent migration from Samsung to SK Hynix, intensifying the competition for skilled workers in South Korea's booming semiconductor industry.