Samsung semiconductor workers secured tentative deal with average annual bonuses of $340,000, ending threatened strike over bonus caps.

Samsung reached a tentative agreement with semiconductor employees who had threatened to strike. The deal makes chip workers eligible for average annual bonuses of $340,000, with all chip workers receiving 50 percent of their annual salary as a regular cash bonus plus stock-based bonuses funded from 10.5 percent of annual operating profits.

The stock bonus distribution was restructured: 40 percent of the total pool spreads across the entire semiconductor division (including loss-making logic chip and third-party units), with the remainder designated for the memory chip unit. A memory chip worker with a base salary around $50,000 could be eligible for a total bonus of $416,000.

Samsung's bonus payouts remain slightly smaller than those offered at SK Hynix, another South Korean chipmaker. Samsung made bonus payments conditional on the company hitting profit milestones, whereas SK Hynix offers bonuses in shares or cash without such conditions. The deal still requires union member approval.