Samsung Electronics has switched to emergency management procedures after union leaders announced plans for a large-scale strike, with up to 50,000 employees expected to walk out for 18 days beginning May 21, according to Mizuho TMT Sector Specialist Jordan Klein.
In advance of a potential stoppage, the company has started a deliberate "warm down" of memory fabrication areas at its Pyeongtaek site to reduce the risk of equipment damage should production be interrupted. As part of those precautions, Samsung has taken roughly 15,000 wafer storage pods out of automated systems on its DRAM lines to protect work-in-progress inventory.
Management and the union remain far apart in bargaining. The union is seeking a 15% share of operating profits and removal of caps on bonuses, demands that have not been resolved. Samsung's stock fell 8.6% on Friday amid the escalation in labor tensions.
Operationally, Samsung is shifting priorities within its memory operations by trimming standard DRAM output to concentrate on High Bandwidth Memory (HBM) production that services AI-related contracts, including those with Nvidia. Analysts say that move reflects an attempt to preserve higher-value, contractual production while suspending less critical lines.
Jordan Klein cautioned that any production interruption could have effects beyond the scheduled strike period. Memory production lines, he noted, require weeks to recalibrate and return to full capacity after being taken offline, potentially prolonging reduced output.
Samsung executives, among them CEO Jun Young-hyun, visited union representatives in Pyeongtaek on Friday in an effort to head off the May 21 deadline, but the company and the union remain at an impasse. Samsung has described the union as a "community of shared destiny," yet the discussions have not yielded an agreement.
Klein also observed that disruption at Samsung - which supplies nearly half of the world’s DRAM - could produce upward pressure in spot-price trends. He said peers including Micron Technology and SK Hynix are positioned to benefit if supply tightens. Analysts warn that a stoppage lasting roughly three weeks could leave a temporary supply vacuum, with the potential to push DRAM and NAND prices higher.
Summary
Samsung is preparing its Pyeongtaek memory fabs for a planned 18-day strike beginning May 21 by warming down production lines and removing about 15,000 wafer storage pods. Negotiations remain deadlocked over profit-sharing and bonus caps. Analysts warn of multi-week recalibration times and potential upward pressure on memory spot prices, with Micron and SK Hynix seen as likely beneficiaries.