Samsung Union Threatens Strike, Potentially Disrupting Chip Production

Samsung Electronics' largest union in South Korea has threatened to disrupt chip production if members approve a strike plan in a vote scheduled for May. According to Jin10, Samsung, the world's largest memory chip manufacturer, could exacerbate global semiconductor supply bottlenecks if a strike occurs. Choi Seung-ho, chairman of the Samsung Electronics Labor Union (SELU), stated last week at the start of the voting process, "I expect production disruptions." The voting will continue until Wednesday. Choi mentioned that if labor negotiations fail, the union plans to hold an 18-day strike starting May 21, potentially affecting about half of the output at the large semiconductor complex located south of Seoul in Pyeongtaek. The union demands a 7% increase in base salary, the removal of the performance pay cap (currently set at 50% of the annual base salary), and the introduction of a bonus pool based on operating profits.