Samsung Strike Looms After Marathon Wage Talks Collapse
Wage talks between Samsung Electronics and the country's largest union ended in failure after a 14-hour marathon session. The union has begun a strike ballot from May 22, with global memory chip supply at risk.
Talks broke down after the gap between the union's eight percent base-pay demand and the company's 4.5 percent offer proved unbridgeable. The Samsung union represents around 32,000 workers and holds a decisive presence at the Hwaseong, Pyeongtaek and Giheung facilities.
The first warning action will target the DDR5 and HBM memory chip lines. Current AI demand has pushed both Samsung and Hynix to record shipments, and analysts say a week-long production halt could shrink the global HBM supply by six percent. Memory chip contract prices have risen 30 percent over the past three months.
South Korea's government called on both sides to talk. A ruling-party spokesperson said a strike could place 'unbearable' pressure on semiconductor exports. Samsung officials said weekend talks have been scheduled to keep the wage dispute from disrupting production.
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