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.
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.
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.
This post was last modified on 06/01/2024