Samsung has begun winding down chip production six days before a planned 18-day strike by workers. The company entered emergency management mode, cutting wafer input and placing equipment on standby. Over 43,000 workers have signed up to participate in the walkout.
Over 43,000 workers join walkout
A source told the Seoul Economic Daily that more than half of the entire semiconductor division workforce is joining, and the company judges a de facto shutdown is imminent. Daily losses could approach 3 trillion won (about $2 billion) if fabrication lines are paused entirely, according to the Seoul Economic Daily. JPMorgan has projected total losses of up to 43 trillion won (about $28 billion) when factoring in labor costs and extended production disruption.
The union head has rejected Samsung's offer to resume talks without preconditions. The strike is set to begin on May 20 and last until June 7, 2026.
The disruption affects Samsung's semiconductor operations in South Korea, which produce DRAM and NAND memory chips. The walkout could impact global memory supply, as Samsung is a major supplier. KB Securities and TrendForce are among the sources tracking the situation.
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