Global demand from AI servers has driven an unprecedented need for HBM memories, DRAM chips and NAND storage. These memory components power the systems behind prominent AI models and enterprise AI clouds. While AI-related demand has pushed profits and chip prices up, it has also fuelled discontent among some manufacturing workers over pay and benefits.
According to Reuters, the dispute centers on wages, the bonus system and profit-sharing. Workers at Samsung Electronics’ semiconductor fabs in Pyeongtaek and Hwaseong are preparing to strike: the union expects tens of thousands to participate, and reports indicate more than 43,000 employees have already joined — representing over half of the company’s Device Solutions (DS) workforce.
The strike is planned for 18 days, beginning May 21, but South Korean sources say Samsung has already started precautionary measures. The company has cut wafer production and placed lithography, etch and cleaning tools into standby. It plans to concentrate limited production capacity on higher-value chips, such as HBM and advanced-node semiconductors.
Industry analysts warn that the combination of pre-strike shutdowns and the strike itself could leave Samsung operating at reduced output for as long as six weeks or more. Timing matters: stopping a process at the wrong point can render entire wafer batches scrap due to process sensitivity. At present, emergency mode means a slowdown; a full stop and restart could take days or weeks and would be extremely costly in an industry where time equates to billions.
Market forecaster TrendForce estimates that, because of Samsung’s production share, the disruption could reduce global DRAM supply by 3–4% and NAND supply by 2–3%. Short-term supply uncertainty could push customers toward competitors such as SK Hynix and Micron. Samsung has estimated potential losses of 20–30 trillion won (about 13–20 billion US dollars) if the strike lasts the planned 18 days, and projects the scenario would amount to 36 days of production loss with at least 2–3 weeks required for post-strike recovery.
Supply-chain experts note that engineers will use the recovery window to fully restore cleanrooms and recalibrate tools before ramping production. Several analysts warn that even a relatively brief production shortfall could further raise DRAM and NAND prices, which have already been on an upward trajectory in recent months.
In sum: a large-scale strike at Samsung and the company’s preemptive scaling-back of production risk immediate effects on global memory supply and pricing, while exposing Samsung to substantial financial and operational challenges during the stoppage and subsequent recovery.
