More than 40,000 Samsung chip workers threaten 18-day strike
More than 40,000 Samsung chip workers may walk out for 18 days from May 21 as a bonus dispute raises concerns over global memory chip supplies.
- More than 40,000 workers at a Samsung chip plant in South Korea are threatening an 18-day general strike, potentially starting May 21.
- The union's primary demand is the complete removal of the company's performance-based bonus cap.
- A strike of this magnitude could disrupt the global supply chain for memory chips, potentially impacting the price and availability of electronic devices.
A large-scale labour action involving more than 40,000 employees at Samsung Electronics’ chip plant in Pyeongtaek, South Korea, is threatening semiconductor production, with the union demanding the removal of the company’s performance-based bonus cap.
If no agreement is reached, the action could escalate into an 18-day general strike from May 21.
Such a strike would shake the supply chain for memory chips used by most Android smartphones, and could affect product prices or availability in the market.
Samsung Electronics, together with TSMC, is one of only a few companies in the world with the capacity and infrastructure to manufacture semiconductors, which are at the heart of most electronic devices today.
However, as long as production cannot rely fully on automation, the company remains exposed to labour-related risks.
More than 40,000 workers have now joined the action at the company’s plant in South Korea.
Reports from South Korea said the labour action took place at Samsung’s Pyeongtaek plant, with around 40,000 people taking part, making it the largest mobilisation in the company’s history.
The dispute centres on the “performance-based bonus cap”, which the union opposes.
It is calling for the restriction to be scrapped and has proposed that Samsung allocate around 15% of its operating profit as employee bonuses.
Analysts expect Samsung Electronics’ operating profit to reach 300 trillion won in 2026.
If 15% were allocated as bonuses, the amount would be around 45 trillion won, representing a major cost burden and explaining why the company is likely to resist the demand.
During negotiations with the union, Samsung reportedly offered a compensation package equivalent to or better than those of its competitors.
However, the offer has not been enough, as the union’s main demand is the complete removal of the bonus cap.
The union previously succeeded in negotiations with SK Hynix, Samsung’s rival in the memory-chip market, giving its demands greater weight and increasing pressure on Samsung.
If the company wants to avoid reputational damage or losing workers, it may have to adjust its terms.
Samsung also has strong reasons to seek a settlement, as 40,000 workers are not a small number.
The union has warned that if no agreement is reached, it will begin an 18-day general strike from May 21, causing significant disruption to operations.
The impact would not only raise costs and hit revenue, but could also risk Samsung losing market share to rivals in the semiconductor industry.
