Union Leader: Samsung Workers' Strike Plan Will Disrupt Chip Supply

The leader of South Korea’s Samsung Electronics largest labor union told the media that as union members vote on a strike plan for May, the union is threatening to halt chip production. The strike at this global largest memory chip manufacturer could worsen the global semiconductor supply bottleneck, driven by strong demand from AI data centers that limits supplies to industries from automotive and computers to smartphones. “I expect production disruptions,” said Choi Seung-ho, head of Samsung Electronics Labor Union (SELU), at the start of the voting last week. Samsung employs about 125,000 people in Korea, with approximately 90,000 unionized workers eligible to vote, and the voting will continue until this Wednesday. Choi said that if workers fail to reach an agreement, they plan to strike for 18 days starting May 21, adding that this could impact about half of Samsung’s large semiconductor factory in Pyeongtaek, south of Seoul. A Samsung official, who declined to be named, said, “Even a single strike causing shutdowns could damage customer trust and take years to recover, as this is a sensitive issue.”