Samsung Electronics is preparing to hand semiconductor employees one of the largest bonus payouts in the company’s history after reaching a late agreement with labour unions that prevented strike action across its chip business.

The South Korean technology giant plans to distribute roughly 40 trillion won, equivalent to about A$44 billion, to workers in its semiconductor division under a new long-term compensation arrangement linked to company performance.

Samsung’s chip unit employs around 78,000 people, with payouts expected to vary depending on division performance and profit levels. Based on current forecasts, average bonuses could reach about 513 million won, or roughly A$565,000 per employee.

Some estimates suggest workers in Samsung’s highly profitable memory chip business may receive even larger payments, potentially approaching 600 million won, equivalent to around A$661,000.

The proposed deal still requires approval from union members, but it outlines a bonus structure that combines stock-based rewards with additional cash payments tied directly to earnings growth.

Under the agreement, Samsung would distribute 10.5 per cent of profits in shares alongside a further 1.5 per cent in cash bonuses. The program is expected to continue annually for the next decade if profitability targets are achieved.

The arrangement reflects the growing importance of semiconductor engineers and manufacturing staff as artificial intelligence drives unprecedented demand for advanced chips and memory products.

Samsung, along with rivals including SK Hynix and Taiwan Semiconductor Manufacturing Co., now sits at the centre of the global AI supply chain, producing critical components used in data centres and AI systems worldwide.

Analysts expect Samsung’s operating profit to surge dramatically during 2026 as demand for high-performance memory chips continues to climb.

The payout structure would allow employees to immediately sell up to one-third of their bonus shares, with the remaining stock released gradually over the following two years.

Barclays economist Bumki Son said increasingly generous compensation packages were becoming necessary as chipmakers compete aggressively for skilled semiconductor talent.

However, he also warned that South Korea’s rigid labour market could make such arrangements difficult to sustain during weaker economic periods.

The AI-driven surge in semiconductor demand has also boosted the fortunes of Samsung’s controlling Lee family. Chairman Jay Y Lee remains South Korea’s wealthiest individual, with family wealth estimated at around A$70 billion earlier this year.

For many South Koreans, careers at Samsung and SK Hynix have long represented some of the country’s most sought-after professional opportunities, with students facing intense academic competition in pursuit of stable and prestigious technology jobs.

The scale of the latest payouts is now being viewed domestically as one of the clearest signs yet of how strongly the global AI boom is reshaping the semiconductor industry and rewarding the workers behind it.