On March 17, South Korea’s largest labor union at Samsung Electronics announced that if its members endorse a proposed strike plan in the upcoming vote scheduled for May, chip production may face significant disruptions. As the world’s foremost manufacturer of memory chips, a strike at Samsung could further strain the already tight global semiconductor supply. Last week, at the launch of the voting process, Samsung Electronics Union Chairman Choi Seung-ho indicated that production interruptions are likely, with the voting period extending until Wednesday. Choi also mentioned that if no resolution is reached between labor and management, the union intends to initiate an 18-day strike starting May 21. Such action could impact approximately half of the output at Samsung’s semiconductor complex in Pyeongtaek, located south of Seoul. The union is demanding a 7% increase in base wages, the elimination of the cap on performance-based bonuses (currently limited to 50% of the annual base salary), and the establishment of a bonus pool tied to operating profits.
