Samsung Group, the South Korean technology giant, is expected to face its largest strike since the company's establishment half a century ago. Thousands of workers from Samsung Electronics will walk off the assembly line and stage a large-scale strike for three days. This unprecedented strike could damage Samsung's reputation, trigger similar activities in the entire technology industry, and also affect the normal operation of the entire chip supply chain. Samsung's demands include raising salary increases and adjusting performance bonus systems.

This unprecedented strike could damage Samsung's reputation, trigger similar activities in the entire technology industry, and also affect the normal operation of the entire chip supply chain.

Samsung will face its largest strike in company history.

After the negotiations on wages broke down last month, Samsung's largest union, the Samsung National Electronics Union, has been preparing for the strike for the past few weeks.

The Samsung National Electronics Union, with more than 28,000 workers accounting for about 20% of Samsung Electronics' total number of employees, has asked Samsung to increase salary increases and adjust the performance bonus system.

The leader of the Samsung National Electronics Union said the strike aimed to send a message by disrupting production in the company's most advanced chip factories: "No raise, no work."

Last Friday, the Samsung Union announced that the union plans to rally as many as 5,000 people outside the Hwaseong Samsung Semiconductor Factory about 38 kilometers south of Seoul at 11 a.m. local time on Monday (10 a.m. Beijing time).

Union representatives said: "The purpose of the strike is to interrupt production."

May cause a chain reaction

For Samsung, now is a critical moment for the development of its chip business, and it cannot afford any internal turmoil or production disruption.

The company is now doing everything it can to persuade Nvidia to use its HBM storage chips to gain a larger share of the booming artificial intelligence market. Since 2023, SK Hynix has been dominating the critical HBM chip market.

To regain the market, Samsung suddenly replaced the head of its semiconductor department in May this year to demonstrate its determination to boost its own chip industry.

Billy Leung, investment strategist for Future Asset Financial Group, said: "The timing of this strike is particularly critical as it coincides with challenges facing the global semiconductor supply chain."

Currently, Samsung has a market share of about 20% in the global DRAM market and about 40% in the NAND flash memory market.

Billy Leung believes: "Any interruption in Samsung's business could trigger a chain reaction."

"No raise, no work."

For many years, Samsung has rarely experienced labor disputes or riots. Even the company did not establish a union until 2019. Analysts believe that Samsung's strict control over labor rights activities is one of its reasons for success, helping the company dominate the global electronics industry for more than ten years.

But now the situation has clearly changed.

Recently, the Samsung National Electronics Union has stated that protests will escalate due to the breakdown of wage negotiations. Union leaders have spent weeks encouraging members to join the upcoming strike.

In early June of this year, Samsung Electronics experienced its first strike in 55 years, and today's strike is an escalation of the June strike.

Editor/ping