Samsung, the world’s largest memory-chip manufacturer, is facing a potential strike by its semiconductor workforce in South Korea. The National Samsung Electronics Union has scheduled the strike for June 7, citing unresolved disputes over wages and working conditions. This labour action emerges amid Samsung’s soaring profits fueled by the global AI surge, exposing growing tensions within the company as workers demand a fairer share of the gains 1.
Representing more than 30,000 employees, the National Samsung Electronics Union declared the strike after months of stalled talks with management. The union is pushing for a 6.5% wage hike, performance-linked bonuses, and a cut in weekly working hours to 40. Samsung posted an extraordinary 933% year-on-year increase in Q1 operating profit, reaching 6.61 trillion won ($4.85 billion), driven largely by strong demand for AI-focused memory chips 1.
Union leaders contend that despite Samsung’s record profits, workers have not received equitable compensation. Lee Hyun-kuk, the union’s chief negotiator, said, “The company is reaping billions from AI, but workers are left with crumbs.” Samsung employs roughly 125,000 people in South Korea, with nearly 40% working in the semiconductor division, which is central to the company’s AI chip production 1.
Samsung’s semiconductor unit has benefited immensely from the AI boom, supplying high-bandwidth memory (HBM) chips to major players like Nvidia. Over the past year, Samsung’s stock price has climbed more than 30%, outperforming rivals such as SK Hynix and Micron. However, the union argues that wage increases have failed to keep pace with these financial gains, deepening income disparities within the workforce 1.
This strike would be Samsung’s first large-scale labour action in over 30 years, signalling a major escalation in employee unrest. Historically opposed to unionisation, Samsung only officially recognised the National Samsung Electronics Union in 2020 after prolonged legal disputes. The union’s rapid growth reflects widespread dissatisfaction among workers over pay and conditions 1.
Kim Dae-jong, a professor at Sejong University, highlighted the potential risks of a prolonged strike, stating, “Samsung is a critical player in the AI hardware ecosystem. Any disruption in its production could have ripple effects across the tech industry.” The strike coincides with Samsung’s ongoing investments in expanding AI manufacturing capabilities, raising concerns about supply chain stability 1.
Samsung management has sought to downplay the strike’s impact, emphasising contingency plans to limit operational interruptions. A company spokesperson stated, “We are committed to resolving this issue through dialogue and ensuring business continuity.” Yet the union accuses Samsung of negotiating in bad faith, citing delays in responding to wage proposals and refusal to discuss reduced working hours 1.
The strike mirrors broader labour trends in South Korea’s technology sector, where workers increasingly demand improved conditions amid soaring corporate profits. Samsung’s competitor SK Hynix faced similar disputes last year, eventually agreeing to wage hikes and better benefits. The resolution of Samsung’s labour conflict could set an important precedent for industrial relations across the country’s tech industry 1.