Samsung Workers Announce Indefinite Strike, Threatening Global Tech Supply
Samsung Electronics Co.’s largest labor union, with over 30,000 workers, has announced an indefinite strike.
This action threatens to disrupt production at the world's leading memory chipmaker.
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The decision follows a series of rallies by thousands of workers at Samsung's chipmaking facilities south of Seoul.
Initially planned as a three-day walkout for better pay, the strike has escalated into the most significant labor action in Samsung’s history.
The union expressed frustration over the lack of dialogue with management, warning of production line disruptions and asserting that management will regret ignoring their demands.
The strike has already influenced financial markets, with a 0.3% decline in Samsung shares in Seoul. It also affected the stocks of suppliers like Wonik IPS Co., TES Co., and Soulbrain Holdings Co.
Despite Samsung's automated processes, there are significant risks of manufacturing disruptions.
The strike takes place amid a tense global semiconductor supply chain, influenced by US-China tech rivalry and other geopolitical challenges.
Samsung plays a critical role, holding about 20% of the global DRAM market and 40% of the NAND flash market.
Analysts like Lee Seung-woo from Eugene Investment & Securities note that the market is more concerned with Samsung's ability to secure contracts, like with Nvidia, than the strike itself.
The strike follows a period where Samsung reported a 15-fold surge in operating profit for the June quarter.