Samsung’s Korean Union Announces Strike, But It Will Not Affect Memory Production and Supply

The union, representing tens of thousands of Samsung workers in South Korea, is planning a one-day strike next week – a first of its kind at the electronics giant. However, industry experts from TrendForce reassure that production of both DRAM and NAND memory chips will remain unaffected, as evident from steady spot prices of these components before and after the announcement.

Details of the Strike

In a press conference last Wednesday, the National Samsung Electronics Union (NSEU) announced that 28,000 members, fewer than a quarter of the company’s South Korean workforce, will participate in a one-day strike on June 7. The decision comes after a fallout in negotiations over pay and bonuses.

Spot prices for DRAM and NAND chips. Image Source:

Samsung’s Market Share in the Global Chip Production

In 2023, Samsung held 46.8% and 32.4% shares in DRAM and NAND chip production worldwide respectively. South Korean factories, which make up 46.8% of global DRAM production and around 17.8% of global NAND chip production, will continue being operational. Analysts from TrendForce list out four reasons why the strike will have no impact on production.

Reasons for No Disruption predicted in Production

First, the strike involves staff members of Samsung’s headquarters in the Seocho District of Seoul, who are not directly involved in production. Second, the strike will only last a day and thus falls within a flexible manufacturing schedule.

Samsung's share in global DRAM and NAND production in 2023. Image Source:

Third, June 6 is a national holiday to commemorate Memorial Day, and some staff members have already applied for leave on June 7, which allows for schedules to be adjusted. Finally, Samsung’s factories are heavily automated, which minimizes human involvement in the production process. Considering these factors, the impact of the strike on Samsung’s delivery of memory chips is expected to be insignificant.

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