【AI+Productivity】Samsung Electronics Faces Largest Strike in History! 18-Day Action Could Paralyze 50% of Production Capacity, Impacting Global AI Chip Supply Chain

Global memory chip leader Samsung Electronics is facing unprecedented strike pressure. Reuters reports that its largest union, the “Samsung Electronics Union (SELU),” plans to initiate an 18-day nationwide strike starting May 21. The voting process is nearing completion, with the final results expected to be announced on Thursday (19th).

Analysts warn that as artificial intelligence (AI) data centers drive up demand for high-performance memory, the semiconductor supply chain is already under strain. If SELU, which has about 90,000 members, ultimately goes on strike, it could cause severe disruptions to the global tech industry.

Threat to Pyeongtaek Plant Capacity and Customer Trust May Take Years to Repair

Union leader Choi Seung-ho clearly stated that the strike is expected to cause production halts, potentially affecting about half of the capacity at Samsung’s Pyeongtaek semiconductor campus.

An internal Samsung source expressed high concern. Semiconductor manufacturing is extremely precise, and even a brief shutdown could lead to huge losses and damage customer trust. Once supply chain stability is compromised, Samsung may need years to regain the confidence of major clients.

Wage Gaps Trigger Talent Turnover

The core issue of the dispute is the widening wage gap between Samsung and competitors like SK Hynix. SELU demands a 7% increase in basic wages, the abolition of performance bonuses exceeding 50% of annual salary, and the establishment of a transparent bonus distribution system based on “operating profit.”

According to SELU’s calculations, even if Samsung records profits in 2025, employees in its chip division will receive bonuses less than one-third of those of SK Hynix employees at the same level. This disparity has led to serious talent loss, with over 100 employees switching to competitors in the past three months, including attracting tech giants like Tesla.

Analysis: Management’s Experience Under Test

Although Samsung Electronics performed well in Q4 2025, with operating profit reaching 20.1 trillion Korean won, a record high, there is still no consensus between labor and management on profit sharing. While management recently proposed a 6.2% salary increase and special bonus incentives, it has failed to quell union dissatisfaction.

Sangmyung University Business School Professor Seo Ji-yong pointed out that Samsung has long lacked experience in handling union relations, which has become a major concern since the abolition of the “union-free” management approach. If management continues to rely on outdated responses and ignores grassroots employees’ calls for transparent distribution, this dispute could erode Samsung’s long-term profitability.