Impending Crisis for Samsung as 45,000 Employees Gear Up for an 18-Day Strike

Samsung Electronics Braces for Impact as Major Walkout Looms

Samsung Electronics has shifted into emergency management mode following the collapse of negotiations with its largest labor union on May 13, 2026. This development paves the way for an unprecedented 18-day strike set to commence on May 21. The walkout, which is expected to involve over 45,000 workers, threatens to disrupt operations at the world’s leading memory chip manufacturer.

Conflict Over Performance Bonuses Fuels Discontent

The dispute revolves around demands for increased bonuses linked to Samsung’s AI-driven profits. The union is insisting that Samsung allocate 15% of operating profit as performance bonuses and permanently abolish the existing cap that restricts bonuses to 50% of annual salary. This comes in the wake of a settlement by competitor SK Hynix, which resulted in employees receiving bonuses that surpassed their annual salaries.

Preemptive Measures and Potential Losses

Anticipating the strike, Samsung has initiated a “warm down” process at its Pyeongtaek facility, curtailing wafer input and putting equipment on standby to avert damage during the potential halt. Analysts predict that daily losses could escalate to 3 trillion won ($2 billion) if fabrication lines are completely suspended, with total losses potentially hitting $28 billion considering extended production disruption.

Global DRAM Supply and Stock Prices at Risk

The strike endangers 3-4% of the global DRAM supply and could drive customers towards competitors like SK Hynix and Micron. Amidst the deepening crisis, Samsung’s stock plummeted by 8.6% on Friday. South Korean Prime Minister Kim Min-seok has called for emergency meetings, and the government may resort to emergency measures to halt the strike if it is deemed detrimental to the national economy.

Source: https://finance.yahoo.com/markets/stocks/articles/samsung-strike-looms-why-analysts-135241419.html