Samsung Electronics Union 93% Vote in Favor of Strike, 18-Day Work Stoppage in May Could Severely Impact Global Chip Supply

Samsung Electronics (005930.KS) held a vote this morning with nearly 90,000 union members, overwhelmingly approving a strike proposal in May with 93% support. The demands include removing the bonus cap and a 7% salary increase. If the strike occurs, it could significantly impact the global AI chip supply chain, with estimated losses reaching up to 9 trillion Korean won.

Samsung unions announced a 18-day strike in May, with management showing goodwill

Korea Times reports that the joint struggle headquarters, formed by Samsung Electronics’ three major unions (National Samsung Electronics Union, Samsung Group United Union Samsung Electronics Branch, Samsung Electronics Labor Union), announced the voting results on March 18. In the strike authorization vote that began on March 9, 66,019 union members participated, with a turnout of 73.5%, and 61,456 votes in favor, supporting at a rate of 93.1%.

The union stated that this overwhelming result is a strong warning to management, demanding they take union demands seriously. Samsung Electronics responded with a statement: “We will do our best to complete the 2026 salary negotiations amicably.”

Trigger event: SK Hynix and labor-management reach consensus

The trigger originated in September 2025, when competitor SK Hynix (000660.KS) first accepted union demands for salary reform, sparking dissatisfaction among Samsung employees. The union membership increased significantly in the following weeks. In November of the same year, Samsung unions and management officially began negotiations for 2026 salaries, but disagreements led to a deadlock.

In March 2026, the government arbitration committee declared mediation failed, and the union legally obtained strike authorization. On March 9, the union launched a vote. The recent vote results show an overwhelming approval, and the union immediately announced plans for action, including a large-scale worker rally scheduled for April 23. If negotiations do not progress, a full-scale 18-day strike will be launched starting May 21.

If the strike occurs as planned, it will be Samsung Electronics’ second full strike since its founding in 1969. The last one was a historic 25-day strike in July 2024, less than two years ago. This strike is larger in scale and involves the three major unions jointly, with an estimated participation of over 70% of Samsung Korea plant workers.

Three core demands, with bonus cap as the biggest deadlock

Transparency in performance bonus calculation: unions demand the company disclose the bonus calculation mechanism to end opaque practices.

Abolish bonus cap: currently capped at 50% of annual salary, unions request to follow SK Hynix’s example and link bonuses directly to business unit profits.

7% salary increase: management has only proposed a 6.2% raise, along with granting 20 shares of company stock as compensation.

Analysis: abolishing the bonus cap is the most difficult negotiation point. Due to the high profitability of the semiconductor division, removing the cap would significantly increase employee pay in the chip department compared to mobile phones, TVs, and other divisions, potentially creating new salary disparities within the group.

Global supply chain alert, AI chip demand at peak

Samsung Electronics produces 100% of its DRAM chips and two-thirds of its NAND flash memory in Korea. As AI data centers demand high-bandwidth memory (HBM) intensifies, a strike could further worsen the global semiconductor supply bottleneck, affecting automotive, computer, and smartphone industries.

Industry estimates suggest that if the strike lasts 18 days, losses could reach at least 5 trillion Korean won; if conflicts escalate, losses could top 9 trillion won. If salary negotiations are not resolved before the May strike, Samsung will face unprecedented labor-management pressure, posing a major challenge to its global chip dominance and investor confidence.

(Memory supply delays again? Qatar helium supply may be cut off, Samsung and SK Hynix urgently inventory check)

This article, “Samsung Electronics Union 93% Vote for Strike, 18 Days of Shutdown in May Could Severely Impact Global Chip Supply,” first appeared on Chain News ABMedia.