Samsung Electronics is in last-ditch talks with its largest labor union to avert a strike that could cripple global semiconductor supply chains.
The union, representing 40,000 to 50,000 chip division workers, threatens an 18-day general strike starting May 21. The dispute centers on demands for 15% of operating profit to be reserved for performance bonuses, removal of payout caps, and greater wage transparency.
If production halts, analysts estimate Samsung could lose approximately ₩1 trillion ($670 million) per day. Cumulative damages for the full strike period could exceed ₩30 trillion ($20 billion), including restart costs and contract penalties.
Samsung has filed for an injunction to block the strike, with a court ruling expected before the deadline. South Korean authorities may also intervene, citing national economic interests.
Samsung shares have already dropped 9.3% on the strike risk. The company is one of only three global producers of cutting-edge high-bandwidth memory chips, alongside SK Hynix and Micron.