Samsung Electronics workers are set to begin a significant three-day strike on Monday, marking the largest organized labor action in the company’s history. This strike follows failed negotiations over pay and vacation time, escalating from a single-day walkout in early June. The union aims to disrupt production at one of Samsung’s advanced chip facilities, a move intended to pressure the company into addressing their demands.
The largest union at Samsung, representing around 28,000 workers, plans to gather up to 5,000 members for rallies outside Samsung’s semiconductor plants in Hwaseong. While the exact number of workers who will participate is uncertain, the strike poses a potential risk to Samsung’s operations and could inspire similar actions across the tech industry. The union’s goal is to send a strong message by halting production, particularly at a time when Samsung is striving to secure a larger share of the AI memory chip market.
This strike comes as Samsung prepares to unveil new foldable phones, watches, and a smart ring in Paris ahead of the Olympics. Despite an anticipated rebound in global memory and electronics demand, any disruption in Samsung’s operations could have significant repercussions. Analysts highlight that Samsung, which controls about 20% of the global DRAM market and around 40% of NAND flash used in smartphones and servers, could face widespread impacts from the strike.
Samsung has historically avoided significant labor unrest, maintaining tight control over labor activism. This strike represents a shift in the company’s labor dynamics, driven by the National Samsung Electronics Union’s decision to escalate actions following a breakdown in pay negotiations.
