Samsung's semiconductor-consumer divide deepens from pay dispute to labor talks

Samsung Electronics’ widening divide between its semiconductor-focused Device Solutions (DS) and finished-products-focused Device eXperience (DX) divisions is spilling over into next year's labor negotiations following a dispute over performance pay, testing the company’s model of operating the two units as largely separate businesses. The company’s DS unit, which makes memory chips and other semiconductors, has benefited from a surge in memory prices, while the DX unit, which sells smartphones, televisions and appliances, has faced higher component costs and weakening profitability. Samsung Electronics Company Union, which is mostly comprised of employees in the DX division, is holding a rally near the company’s office in Gangnam District, Seoul on Friday, expecting about 3,000 participants. The union is seeking additional compensation equivalent to 1,000 Samsung Electronics shares per DX employee, saying the pay gap with DS workers has become excessive. Meeting the demand is estimated to cost the company more than 12 trillion won ($8.68 billion). The dispute follows a wage agre