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Samsung Workers Rally at Pyeongtaek, Threaten 18-Day Strike Over Pay

Union demands for a larger share of record chip profits now put AI supply chains at risk.

Overview

  • Tens of thousands of employees rallied at Samsung’s Pyeongtaek chip campus on Thursday, with unions counting up to 40,000 and police estimating about 34,000.
  • Organizers warned they will strike for 18 days from May 21 to June 7 if talks fail, saying the walkout could halt shipments and raise memory prices.
  • The unions want Samsung to scrap a 50% cap on bonuses, allocate 15% of annual operating profit to performance pay, and lift base pay by 7%.
  • Samsung rejects a fixed payout ratio and has offered 10% of operating profit plus extra funds for the memory unit, and it filed a court injunction on April 16 while warning it will sue over interference with safety systems.
  • Union membership has surged past 90,000 after SK Hynix removed its bonus cap last year, and analysts say a prolonged stoppage could disrupt AI chip supply even if automation and subcontractors limit the hit.