Intensifying the global chip shortage? On March 18, Samsung union launches strike vote.

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Samsung Electronics is facing a new round of labor-management confrontation, and a strike could further exacerbate the global chip shortage.

On March 9, according to Bloomberg, three major labor unions representing about 89,000 Samsung employees are negotiating with management over wages and will start a vote this week to decide whether to launch an 18-day strike. If approved, this strike would be the second large-scale shutdown in Samsung's history, coinciding with a sensitive adjustment period in the global semiconductor supply chain.

The Samsung Electronics Labor Alliance issued a statement saying that if the proposal is approved, the strike will take place from May 21 to June 7, lasting 18 days. The unions’ core demands include: a 7% wage increase, the removal of the cap on performance bonuses, and greater transparency in the bonus calculation method.

Analysts point out that these demands reflect longstanding dissatisfaction with the transparency of the compensation system. The issue of performance bonus caps is particularly sensitive—in the cyclical boom periods of the semiconductor industry, employees generally hope to share in company profits, while the current cap mechanism is seen as limiting their actual earnings.

Reports say the three unions together represent 89,000 out of Samsung’s roughly 130,000 employees, nearly 70%. The wide coverage means the potential strike’s impact on production and operations cannot be ignored.

Historical precedent: The first strike in 2024 did not affect production

Reports indicate this strike is planned for late May to early June, a period when global semiconductor market demand is rebounding and supply stability is under intense scrutiny.

Samsung is one of the world’s largest memory chip manufacturers, and its production dynamics have a direct impact on global supply patterns for DRAM and NAND flash.

If this strike goes ahead, it will be the second large-scale shutdown in Samsung’s history. In 2024, after wage negotiations broke down, Samsung workers launched the company's first strike. At that time, Samsung stated the shutdown did not affect production or management operations.

The precedent from 2024 provides some reference for the market, but the scale and duration of this planned strike are quite different. The planned 18-day shutdown far exceeds the previous one, and the joint action of the three major unions represents a larger base of employees, so the potential impact cannot be compared to the previous strike.

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