Rising HQ bonuses at Samsung, SK hynix cause stir at China plants: reports

Workers at semiconductor plants in China operated by South Korean chipmakers are reportedly demanding higher bonuses, as expectations grow for windfall payouts at their headquarters in Korea.

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.

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.

Samsung's Xian manufacturing complex, the company’s only overseas facility producing NAND flash memory chips, reportedly accounts for about 40 percent of its total NAND output and employs more than 3,000 local workers. SK hynix's Wuxi plant is believed to produce roughly half of the company's DRAM chips and employs an estimated 4,000 workers in China.

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.