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Samsung Temporarily Avoids Major Strike Amid AI Chip Demand Surge
(MENAFN) According to reports, Samsung Electronics has secured a provisional wage agreement with its largest labor union, preventing an imminent strike that could have disrupted the global semiconductor supply chain during a period of intense demand driven by artificial intelligence technologies.
The deal was reportedly finalized following government-facilitated negotiations held shortly before approximately 48,000 workers were expected to begin an 18-day walkout.
Union officials stated that the planned strike has been suspended while employees vote on the proposed agreement between May 22 and May 27, leaving the broader dispute unresolved for the time being.
According to reports, the conflict centered on demands for a greater share of profits generated by Samsung’s expanding AI-related business performance. The union had called for 15 percent of the company’s yearly operating profits to be distributed as employee bonuses and sought the removal of restrictions placed on wage incentives.
The preliminary arrangement reportedly introduces a revised bonus structure that allocates semiconductor workers a 10.5 percent share of operating profits.
The potential labor action attracted global attention because Samsung is among the world’s leading memory-chip manufacturers and the largest corporation in South Korea.
Industry figures cited in reports indicated that the company controls around 36 percent of the worldwide DRAM market and approximately 28 percent of the NAND flash market, meaning any interruption at its production facilities could have affected AI infrastructure, data centers, smartphones, computers, and other electronics sectors globally.
The deal was reportedly finalized following government-facilitated negotiations held shortly before approximately 48,000 workers were expected to begin an 18-day walkout.
Union officials stated that the planned strike has been suspended while employees vote on the proposed agreement between May 22 and May 27, leaving the broader dispute unresolved for the time being.
According to reports, the conflict centered on demands for a greater share of profits generated by Samsung’s expanding AI-related business performance. The union had called for 15 percent of the company’s yearly operating profits to be distributed as employee bonuses and sought the removal of restrictions placed on wage incentives.
The preliminary arrangement reportedly introduces a revised bonus structure that allocates semiconductor workers a 10.5 percent share of operating profits.
The potential labor action attracted global attention because Samsung is among the world’s leading memory-chip manufacturers and the largest corporation in South Korea.
Industry figures cited in reports indicated that the company controls around 36 percent of the worldwide DRAM market and approximately 28 percent of the NAND flash market, meaning any interruption at its production facilities could have affected AI infrastructure, data centers, smartphones, computers, and other electronics sectors globally.
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