Samsung Electronics Union Approves May Strike, Threatening Global AI Chip Supply Chain

Samsung Electronics is a major global supplier of memory chips and high-bandwidth memory, or HBM, products that are critical to AI accelerator production. With labor and management deadlocked over performance bonuses and profit-sharing, about 48,000–50,000 union members were preparing to walk off the job. JPMorgan estimated that Samsung’s revenue could fall by 4 trillion won.

Union members authorized a strike with 93% support and had planned to begin an 18-day full-scale walkout on May 21. Although the action was postponed at the last minute and members voted on a preliminary agreement, the latest negotiations also collapsed. The union then announced another general strike starting the following day, while Samsung shares fell as much as 4% intraday. A court separately ruled that the union must not disrupt production, imposing a fine of 100 million won for each day of noncompliance.