SEOUL, South Korea (AP) — Samsung Electronics’ labor union said Wednesday it’ll hold off on launching a planned strike and put a tentative wage deal with management to a vote, alleviating immediate concerns about the operation of the world’s largest memory chip maker.
The announcement was made after a last-minute government-mediated negotiation with management over how much bonus payouts must be provided to employees to reflect soaring profits fueled by the global boom in artificial intelligence.
Union leader Choi Seung-ho told a televised briefing that the union agreed not to go ahead with an 18-day strike that he earlier said would start from Thursday. He said union members will vote on the tentative agreement from May 22-27.
“We would like to express our apologies to the people for causing concerns due to our internal conflicts,” Choi said. “The agreement is the result of our all-out struggle spanning about six months.”
Choi’s negotiating partner and senior Samsung official, Yeo Myounggoo, told the briefing that the company hopes that the agreement will be a starting point for more stable relations with the union.
“The company will faithfully implement the terms of this agreement and will make its utmost efforts to promote labor–management cooperation,” he said.
Government officials earlier had threatened to invoke rarely used emergency powers to force a settlement at Samsung, as its union’s strike was feared to rattle global semiconductor supplies and the country’s trade-dependent economy. The union represents more than 70,000 workers.
Earlier Wednesday, the union and the management held each other responsible for a failure to reach a deal, after their previous round of negotiation ended without a breakthrough. Choi accused management of refusing to accept a government-mediated proposal whose details he refused to disclose. The management accused the union of calling for excessive compensation packages for workers at loss-making units.
Samsung and its cross-town rival, SK Hynix, together produce about two-thirds of the world’s memory chips, which are seeing surging demand driven by AI. Samsung said last month its operating profit for the January-March quarter jumped eightfold to a record 57.2 trillion won ($38 billion).
Union leaders have demanded a compensation structure in which Samsung would commit to spend 15% of its annual operating profit on employee bonuses and scrap bonus caps, which are currently set at 50% of annual salaries. The company says the demands are excessive, citing the highly cyclical nature of the semiconductor business.
Samsung and union leaders did not immediately confirm the details of their tentative agreement. Yeo suggested that the company had agreed to union demands to extend bonuses beyond its lucrative memory division to less profitable units.
“For example, we need to invest in the future of both our memory and foundry businesses. These engineers all work in semiconductor production, and we discussed ways to better motivate them,” he said.
Prime Minister Kim Min-seok, the government’s No. 2 official after President Lee Jae Myung, said in a televised statement Sunday that the strike could cause up to 100 trillion won ($66 billion) in economic damage by disrupting Samsung’s highly complex semiconductor manufacturing processes.
The planned strike could potentially have had a major global impact.
Given that supply in the global memory semiconductor market is struggling to keep up with demand, the Samsung strike would have been expected to further drive up prices and push back AI infrastructure investments in other countries, said Lee Jun, an expert at the Korea Institute for Industrial Economics and Trade.
The strike could have hurt operations of Samsung’s production of smartphones and other consumer electronics as well, observers say.
A local court on Monday partially granted the company’s request for an injunction against the planned strike, ruling that the union must maintain certain staffing levels to prevent damage to facilities and materials and ensure safe operations. The Suwon District Court also barred unionists from occupying key facilities and offices.
The logo of the Samsung Electronics Co. is seen at its office in Seoul, South Korea, Wednesday, May 20, 2026. (AP Photo/Ahn Young-joon)
The logo of the Samsung Electronics Co. is seen at its office in Seoul, South Korea, Wednesday, May 20, 2026. (AP Photo/Ahn Young-joon)
Choi Seung-ho, a leader of the Samsung Electronics labor union, leaves after attending the government-led mediation talks with management at the National Labor Relations Commission office in Sejong, South Korea, Wednesday, May 20, 2026 (Yonhap via AP)
DUBAI, United Arab Emirates (AP) — The United States launched airstrikes early Wednesday against Iran after blaming Tehran for the crash of an American attack helicopter, and Iran fired back at countries in the region — another escalation that threatened to derail efforts to end the war.
Hours after Bahrain, Kuwait and Jordan came under Iranian fire, U.S. President Donald Trump posted on his his Truth Social platform that Iran was taking “too long to negotiate a deal” and that “now they will have to pay the price.”
It wasn’t clear what exactly that would mean, but the back-and-forth strikes Wednesday again raised the question of how much pressure the deal can take before it cracks. The exchange of fire was the second time this week that such strikes have tested the ceasefire after Iran and Israel targeted each other on Monday.
Trump has repeatedly vacillated between expressing optimism over the talks and warning that he was ready to return to all-out war. Iran, meanwhile, has proved resilient despite having faced weeks of heavy bombing, betting that its ability to effectively close the Strait of Hormuz — a crucial passageway for the world’s oil and natural gas — gives it a strong bargaining chip.
Both countries seem to be looking for a way to end the conflict — if they can manage to sell it as a win at home. But Israeli Prime Minister Benjamin Netanyahu appears intent on pursuing much more difficult goals: the collapse of Iran’s theocratic government, the elimination of its nuclear program, and the destruction of the Iranian-allied Hezbollah militant group in Lebanon. That will make compromise much harder.
Netanyahu posted on X around the same time as Trump, again insisting that Iran could never have a nuclear weapon and defending Israel’s decisions to attack the Islamic Republic in the past.
Since the U.S. and Israel started the war with attacks on Iran on Feb. 28, the conflict has shaken the global economy, driven up energy prices around the world, and made many basics, including food, more expensive. Brent crude oil, the international standard, was at more than $91 a barrel on Wednesday, up more than 25% since the start of the war.
In the latest strikes, U.S. fighter jets targeted “air defense, ground control stations, and surveillance radar sites,” the military’s Central Command said. Iran acknowledged strikes around Bandar Abbas and Qeshm Island, but gave no details on the damage.
“The operation was a proportional response to recent attacks on U.S. forces and international commercial ships transiting regional waters,” Central Command said.
Iran’s top diplomat vowed that there would be a response, and Tehran later claimed attacks in Kuwait, Bahrain and Jordan.
Jordan said it shot down five incoming missiles, which Iran said targeted the Muwaffaq Salti Air Base. The base has hosted American F-35 fighter jets and other aircraft.
Jordan’s state-run Petra news agency carried a military statement saying there were no injuries and that explosives experts examined the debris from the interceptions.
Bahrain and Kuwait said they intercepted incoming fire, without elaborating.
Iranian Foreign Minister Abbas Araghchi condemned the American attacks as a violation of Iranian sovereignty in calls with his counterparts from Turkey and Saudi Arabia “and emphasized the inherent right of self-defense, including reciprocal action,” according to a post on his office's Telegram channel.
Foreign Ministry spokesperson Esmail Baghaei said in televised comments Wednesday that in light of the new attacks, Iran would review its stance on negotiations to end the war.
The exchanges of fire came a day after a U.S. Army attack helicopter crashed near the Strait of Hormuz after colliding with an Iranian drone, according to a U.S. official, who spoke on condition of anonymity to discuss an ongoing investigation. It wasn’t clear whether the collision was intentional.
A drone boat rescued both of the helicopter’s aviators, and Trump said they were uninjured.
Guards aboard a cargo ship off the coast of Yemen in the Gulf of Aden exchanged fire with gunmen in a small boat and repelled their attack, the British military’s United Kingdom Maritime Trade Operations center said.
No group immediately claimed responsibility. Yemen’s Iran-backed Houthi rebels have said they will resume their attacks against Israel-affiliated ships in the Red Sea. Somali pirates have also become more active in the region.
The UKMTO later reported a fire in the engine room of a tanker in the Gulf of Oman, near the Strait of Hormuz, saying one person had been hurt and two others aboard were missing. It wasn’t immediately clear what caused the fire.
Before he accused Iran of downing the U.S. helicopter, Trump expressed renewed optimism over negotiations with Iran, but didn’t say why there was reason for hope.
While Trump, wary of high gas prices and upcoming congressional elections in November, seems to be looking for a quick win, he is also making demands that will be tough for Iran to swallow.
The U.S. wants to see Iran give up its stockpile of highly enriched uranium. While Iran insists its nuclear program is peaceful, that uranium is a short, technical step from weapons-grade levels.
Iran is refusing to give up the uranium and demanding relief from sanctions. It also wants the release of frozen assets even before a final agreement is in place, something rejected by Trump.
It's not clear how those differences can be bridged — and Trump has repeatedly threatened to walk away from the talks. On his Truth Social platform overnight he seemed to be warning again that he was ready to return to all-out war, posting a clip from the American TV series “The West Wing” with actor Martin Sheen as president bellowing: “We don’t come back with a proportional response, we come back with total disaster!”
Meanwhile, Iran has continued to insist that any deal to end the war must also end fighting between its ally Hezbollah and Israel. Instead, Israel has intensified its military campaign against the militant group.
Israel's military said on Wednesday it launched multiple strikes in southern Lebanon over the past day, targeting Hezbollah infrastructure.
An airstrike on a village east of Tyre killed at least six people, Lebanon's state-run National News Agency reported.
Associated Press writers David Rising in Bangkok; Bassem Mroue in Beirut; Michelle L. Price in New York; and Will Weissert in Washington contributed to this report.
People take shelter as air raid sirens warn of incoming Iranian missiles in Ramat Gan, Israel, Monday, June 8, 2026. (AP Photo/Oded Balilty)
A projectile streaks through the sky over central Israel during an Iranian missile attack, Sunday, June 7, 2026. (AP Photo/Ohad Zwigenberg)
A cleric checks his cell phone on stage in front of a screen displaying portraits of the late Iranian revolutionary founder Ayatollah Khomeini, left, late Supreme Leader Ayatollah Ali Khamenei, center, and Supreme Leader Ayatollah Mojtaba Khamenei, during a pro-government gathering in Tehran, Iran, Sunday, June 7, 2026. (AP Photo/Vahid Salemi)
A woman walks past a mural depicting a U.S. aircraft carrier under missile attack in downtown Tehran, Iran, Monday, June 8, 2026. (AP Photo/Vahid Salemi)
