Union demands hundreds of thousands per head or else total shutdown.
Samsung strike looms: Why analysts say to “watch MU” as memory fabs warm down
Investing.com — Samsung Electronics has entered emergency management mode as up to 50,000 employees prepare to strike for 18 days starting May 21, according to Mizuho TMT Sector Specialist Jordan Klein. The company has begun a “warm down” of its memory fabs at the Pyeongtaek facility to prevent equipment damage during a potential stoppage.
Samsung management and its union remain far apart on negotiations, with the union demanding a 15% share of operating profits and removal of bonus caps. The company’s stock dropped 8.6% on Friday.
The facility has removed approximately 15,000 wafer storage pods from automated systems at DRAM lines to protect work-in-progress inventory. Samsung is prioritizing its High Bandwidth Memory (HBM) lines for AI contracts with companies including Nvidia by reducing standard DRAM production.
Klein warned that production disruption extends beyond the strike period. Memory production lines require weeks to recalibrate after going offline.