Massive Growth in Samsung’s Chip Division

The rapid rise of AI has significantly increased demand for data centers, leading to a surge in requirement for memory chips worldwide. Benefiting from this trend, South Korean electronics giant Samsung’s chip division has recorded massive growth. With revenues reportedly rising sharply in the recent quarter, the company has announced a bonus of around ₹3.25 crore for each employee in its semiconductor division, subject to board approval.

The decision also comes in the backdrop of employee unrest, where workers had threatened a prolonged strike demanding performance-based bonuses and salary revisions. To avoid disruption in semiconductor production, which could cause global supply chain losses, Samsung reached an agreement with the employee union. As part of this deal, nearly 78,000 employees are expected to receive the record bonus. Another chipmaker, SK Hynix, had earlier also announced similar performance-linked incentives.