Samsung is reducing memory chip wafer starts starting May 14 as a preemptive measure against a potential strike. The company is prioritizing high-bandwidth memory (HBM) production, followed by high-end DRAM such as DDR5 for servers and AI PCs, and enterprise SSDs. Consumer DRAM and mid- to low-end NAND are being cut back to focus on higher-value chips.
Union plans strike from May 21 to June 7
The production adjustment comes as a union representing 41,000 workers plans a strike from May 21 to June 7. The dispute centers on bonus structure: the union demands 15% of operating profit, while management offers 10% plus one-time compensation. The Suwon District Court has issued an injunction limiting the strike to not affect production or damage materials.
Samsung's move reflects a strategic shift toward high-margin memory products amid labor uncertainty. The company is prioritizing chips critical for AI and data center markets, where demand remains strong. The outcome of the labor negotiations could affect Samsung's ability to meet customer orders for advanced memory.
Samsung has not confirmed the full impact of the production cuts or the strike's potential disruption. The court injunction may limit the strike's effect on output, but the situation remains fluid. Industry observers are watching for further developments in the labor talks.
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