Samsung DRAM Prices Locked In for 30% Q2 Increase as Strike Looms

Samsung Electronics has proposed an unconditional resumption of talks with its union, but the union has refused, stating that no negotiations will occur before June 7. The union plans an 18-day strike starting May 21, with over 50,000 employees expected to participate.

Union rejects talks, strike begins May 21

Samsung has locked in Q2 DRAM contract prices with major clients at 30% higher than Q1. Q1 DRAM average price was already up 100% year-on-year, and the price is now 2.6 times the early 2025 level. The strike could reduce global DRAM supply by 3-4%.

A strike rehearsal on April 23 caused a 58% drop in foundry output and an 18% drop in memory output at the Pyeongtaek plant. JPMorgan estimates an operating profit loss of 21-31 trillion KRW (956-1411 billion CNY). Higher memory costs are expected to raise prices of consumer electronics like phones and laptops.

The South Korean government warned on May 14 that it may exercise emergency arbitration. Samsung has not confirmed the impact on future pricing or supply.