DS Division members now make up nearly 80% of Samsung’s largest union.
Samsung Electronics’ semiconductor factory. (Photo courtesy of Samsung Electronics)
The proportion of members from the Device Solutions (DS) Division, which handles the semiconductor business, is growing within the National Samsung Electronics Union (NSEU), the largest union at Samsung Electronics.
This trend is analyzed to have become more pronounced as the semiconductor business enters a supercycle (long-term boom) and employee demands for larger performance-based bonuses increase.
According to industry sources on April 1, the NSEU announced that as of March 31, its total membership reached 70,375, accounting for 54.5% of all employees.
Among these, the number of members from the DS Division was 55,822, accounting for 79.3% of the union’s total membership. This represents a slight increase from the end of last January (77.6%). Over the past two months, the number of members from the DS Division grew by 6,470.
The unionization rate among all employees in the DS Division reached 72.2%, an increase of 6.8 percentage points from 65.4% at the end of January.
In contrast, the number of union members from the Device eXperience (DX) Division, which handles finished products such as smartphones and home appliances, stood at 14,553 as of the 31st of last month, accounting for 20.6% of the total union membership. This figure is down from 22.3% at the end of January.
Over the past two months, the number of union members in the DX Division increased by only 326, from 14,227. This growth is limited compared to the DS Division.
Industry analysts attribute the concentration of union membership in the DS Division to a more pronounced movement aimed at expanding performance-based compensation.
The semiconductor business is a typical cyclical industry, and it has recently been posting record-breaking performance driven by AI demand. This trend appears to reflect internal demands that performance bonuses should be significantly expanded to match the improved results.
The union’s encouragement for employees in major business divisions to join is also interpreted as a contributing factor, coming amid ongoing wage and performance bonus negotiations between Samsung Electronics’ labor and management for 2026.
The DX Division has a high proportion of mature businesses, such as smartphones and home appliances, leading to relatively limited performance volatility.
Recently, the business has been sluggish due to a global demand slump and intensified competition. Consequently, it is analyzed that the perceived need to secure additional compensation through the union is relatively low in this division.
Meanwhile, conflict between Samsung Electronics’ labor and management is intensifying over the criteria for performance bonus payments. There are also concerns that a general strike could become a reality as the two sides fail to narrow their differences.
The union has been continuously demanding that the company abolish the cap on the Overall Performance Incentive (OPI), a representative performance bonus system.
Previously, the company stated in a notice on March 30, “We made our best efforts to reach an agreement through these intensive negotiations, but we find it very regrettable that the talks have been suspended.”
The company announced that it had prepared and proposed a ‘special compensation’ plan to the union side to guarantee the industry’s highest level of compensation. It explained that this special compensation plan would exceed the existing OPI system’s cap of 50% of one’s annual salary.
An industry official stated, “In the semiconductor sector, the size of performance bonuses varies greatly depending on performance, so employees are highly sensitive to compensation,” adding, “The proportion of members from the DS Division could increase further.”
Kim Eun-jin
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