Record bonuses at Samsung, SK hynix stir pay demands in China plants

Workers at Samsung and SK hynix's China semiconductor plants are demanding higher bonuses after news of record payouts at their South Korean headquarters. This has created frustration over a widening compensation gap between HQ and local hires.

Rising bonuses at Samsung and SK hynix headquarters in South Korea are causing a stir at China plants as employees demand higher compensation. Workers at semiconductor plants in China operated by the South Korean chipmakers are reportedly demanding higher bonuses, as expectations grow for "windfall payouts at their headquarters in Korea."

According to a report by The Korea Herald, the sentiment among local hires has shifted as news of record-breaking financial rewards for staff in South Korea reached overseas manufacturing hubs. These demands reflect a growing concern among the regional workforce regarding the distribution of profits during periods of high performance. The report stated that the disparity between domestic rewards and international pay scales has become a primary point of friction. "Industry officials said many overseas employees are closely following news of earnings and record bonus payments in Korea, fueling frustration over what they see as a widening compensation gap between staff at the headquarters and local hires," the report said.

Focus on Key Production Sites in China

The focus of these demands involves critical production sites for both Samsung Electronics and SK hynix that maintain a significant portion of the global chip supply.

Samsung's Xian NAND Facility

Samsung's manufacturing complex in Xian, located in Central China, serves as the company's only overseas facility for NAND flash memory chips. This plant is a cornerstone of the firm's global operations, accounting for approximately 40 per cent of its total NAND output. The facility currently employs more than 3,000 local workers.

"Multiple Korean media outlets, citing industry sources, reported Thursday that some locally hired workers at Samsung Electronics' chip plant in Xian in Central China and SK hynix's DRAM factory in Wuxi, near Shanghai, have recently called for higher compensation, as a recovery in the chip sector boosts earnings prospects," the report highlighted.

SK hynix's Wuxi DRAM Plant

SK hynix's operations in Wuxi, situated near Shanghai, are estimated to produce roughly half of the company's DRAM chips, making it a vital asset in the semiconductor supply chain with an estimated 4,000 workers employed.

Official Company Responses

"Samsung Electronics said no formal requests for higher bonuses had been made, while SK hynix said its compensation system is aligned with local conditions in each country," the report noted. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)