
<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Samsung Electronics’ unionized workers in South Korea announced an indefinite strike on Wednesday to step up their campaign for a pay raise—in a move that could impact global chip supplies.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>The National Samsung Electronics Union said the decision to go on an indefinite strike was made after the company’s leadership failed to engage in dialogue with them during a three-day walkout by some of its members, Yonhap News Agency&nbsp;<a href="https://en.yna.co.kr/view/AEN20240710004151320?section=economy-finance/economy" rel="noreferrer noopener" target="_blank">reported</a>.</p>



<p>According to the union, around 6,500 of its members are presently&nbsp;<a href="https://www.wsj.com/tech/samsung-electronics-union-launches-indefinite-strike-7e653e0f?st=h0nctj0amls5r4f&amp;reflink=desktopwebshare_permalink" rel="noreferrer noopener" target="_blank">participating</a>&nbsp;in the strike—including&nbsp;<a href="https://en.yna.co.kr/view/AEN20240710004151320?section=economy-finance/economy" rel="noreferrer noopener" target="_blank">more than 5,000</a>&nbsp;workers from the company’s semiconductor division.</p>



<p>Samsung told several news outlets that the strike hasn’t caused any disruptions so far.</p>



<p>On its&nbsp;<a href="https://samsunglabor.co.kr/37/?idx=38827584&amp;bmode=view" rel="noreferrer noopener" target="_blank">website</a>, the union claimed it had “clearly identified line production disruptions” and warned the company would “regret the decision” to not engage in dialogue.</p>



<p><a href="https://www.bloomberg.com/news/articles/2024-07-10/samsung-labor-union-says-prepared-to-strike-indefinitely?srnd=homepage-asia" rel="noreferrer noopener" target="_blank">According to</a>&nbsp;Bloomberg, the union is first targeting a smaller chip fabrication plant before turning its focus towards Samsung’s high-bandwidth memory chip production facility in Pyeongtaek.</p>



<p>The union’s demands include a 3.5% increase in base pay for all its members, a revamping of the bonus payments structure and an extra day of leave to mark the day of the union’s founding.</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>Around 31,000. That is the total number of workers represented by National Samsung Electronics Union, accounting for nearly a quarter of Samsung Electronics’ 125,000 strong workforce.</p>



<h2 class="wp-block-heading" id="h-news-peg">NEWS PEG</h2>



<p>Samsung is the world’s largest maker of memory chips, which have emerged as a key driver of&nbsp;<a href="https://www.reuters.com/technology/samsung-flags-15-fold-rise-second-quarter-profit-chip-prices-climb-2024-07-04/" rel="noreferrer noopener" target="_blank">profits</a>&nbsp;for the company amid an AI boom. According to the research firm Trendforce, Samsung accounted for&nbsp;<a href="https://www.trendforce.com/presscenter/news/20240305-12060.html" rel="noreferrer noopener" target="_blank">45.5% of the global DRAM chip</a>&nbsp;market share and&nbsp;<a href="https://www.trendforce.com/news/2024/03/15/news-samsung-nand-flash-prices-reportedly-set-to-increase-by-20/" rel="noreferrer noopener" target="_blank">36.6% of the NAND Flash memory chip</a>&nbsp;market—both essential components in computers, smartphones and servers. However, Samsung’s efforts to gain AI juggernaut Nvidia’s approval for its latest High Bandwidth Memory chips (HBM3e) have run into challenges with Nvidia CEO Jensen Huang&nbsp;<a href="https://www.tomshardware.com/tech-industry/semiconductors/nvidia-ceo-says-samsung-hbm3e-not-yet-ready-for-ai-accelerator-certification-jensen-huang-suggests-more-engineering-work-is-required" rel="noreferrer noopener" target="_blank">suggesting</a>&nbsp;it requires more engineering work. Bloomberg&nbsp;<a href="https://www.bloomberg.com/news/articles/2024-07-10/samsung-labor-union-says-prepared-to-strike-indefinitely?srnd=homepage-asia" rel="noreferrer noopener" target="_blank">notes</a>&nbsp;that while most of Samsung’s HBM manufacturing is automated, any disruptions from the strike could seriously hurt the company’s chances of displacing rival SK Hynix as Nvidia’s preferred memory chip supplier.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://en.yna.co.kr/view/AEN20240710004151320?section=economy-finance/economy" rel="noreferrer noopener" target="_blank">Unionized workers at Samsung Electronics declare &#8216;indefinite&#8217; strike</a>&nbsp;(Yonhap News Agency)</p>


Tag: Samsung Protest

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Samsung Union Announces Indefinite Strike—Move May Impact Global Memory Chip Supplies