Samsung employees are set to receive a substantial bonus of around £300,000 ($400,000) each due to the surge in artificial intelligence (AI) technology. This bonus, equivalent to 10.5% of semiconductor operating profits, will be mainly distributed in the form of stocks among 78,000 chip workers. The agreement, reached after a five-month negotiation between Samsung and its labor union, was approved by 74% of the voting employees.
Initially faced with the threat of an 18-day strike by the union, Samsung managed to avert major disruptions in global chip supplies by finalizing the profit-sharing deal. The individual bonus amounts will vary based on job roles, with an average of £250,000 reported by Bloomberg. However, other estimates suggest that the payouts could reach up to £300,000, nearly four times the average annual salary of a Samsung worker in 2025.
The bonus distribution excludes subcontractors and employees in the consumer electronics division responsible for Samsung’s smartphones and laptops. Samsung’s market value surpassed $1 trillion (£740 billion) as investors continued to show confidence in AI-related stocks. The company’s recent financial report revealed a significant surge in operating profit to £28.4 billion and record revenue of £66.5 billion.
In addition to Samsung, chipmakers like SK Hynix and Micron also saw their market valuations exceed $1 trillion this week. SK Hynix committed to sharing 10% of operating profits over the next decade. Notably, tech giants such as Nvidia, Amazon, Apple, Microsoft, Alphabet, and Meta have also achieved valuations exceeding $1 trillion.
Recently, a study highlighted that technology and AI firms could earn up to £194,000 from utilizing the data of each UK internet user throughout their lifetime. Companies, including some of the world’s largest and most influential, leverage personal data for various purposes, as revealed by the Web3 Foundation report. This study emphasized the extensive range of digital footprints individuals leave behind, from online activities to social media interactions.
Bill Laboon, the vice president of technical operations at Web3 Foundation, emphasized the importance of understanding how personal data is utilized and monetized by various entities. People often underestimate the extent to which their data is leveraged for services like ChatGPT and spell check corrections, underscoring the significance of privacy awareness in today’s data-driven landscape.