Union rally causes Samsung fab production to plummet by 58% during night shift as workers demand up to $400,000 bonuses — updated figures show over 40,000 peopl

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Union rally causes Samsung fab production to plummet by 58% during night shift as workers demand up to $400,000 bonuses — updated figures show over 40,000 peopl

The Samsung workers union could potentially cripple the company's production if management refuses to meet their demands.

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Samsung’s production numbers reportedly plummeted significantly during a one-day strike by the company’s labor union. According to Seoul Economic Daily , citing union officials, the company’s memory fab output fell by 18% while its contract chip foundry plunged by 58.1%. These numbers only affected the night shift after the April 23 strike , with the “Joint Struggle Headquarters” saying that it will conduct a larger 18-day labor action if company management fails to reach a deal with workers. The union estimates that the walkout, which would last for more than two weeks, will cost the company KRW 30 trillion, or over $20 billion. It also threatened to mobilize personnel assigned to the fabs’ “safety protection facilities.”

The disagreement between the union and management stems from the company’s refusal to allocate 15% of its operating profit as a bonus for its workers, amounting to around $27 billion (about KRW 40 trillion), and would net chip fab workers around $400,000 each. Aside from this, the union also demanded a 7% increase in pay and a removal of the 50% bonus cap. The management made a counteroffer of a 10% operating profit bonus, 6.2% wage increase, and preferential mortgage loans, among other benefits, but it seems that this wasn’t enough for the union.

The group pointed out that SK hynix, Samsung’s biggest domestic chip rival, has given its workers a performance bonus amounting to 10% of its annual operating profit and removed the cap on the amount. This means that their bonuses only equate to less than 30% of what the SK hynix workers get, even though Samsung is 60% larger in terms of market capitalization.

You may like More than 30,000 Samsung union members take to the streets to demand higher cut of AI profits, an average of $400,000 per worker Every SK hynix employee could receive $477,000 bonuses this year, almost $900,000 next year Samsung's Taylor, Texas fab could herald a breakthrough for the chipmaker, company plans 2026 risk production Initial estimates from the police suggested that over 30,000 people attended the strike, but the union said that about 40,000 of its members were present in yesterday's action. This is a massive number and is said to represent nearly a third of the company’s semiconductor fab workforce. A general strike lasting several days would cripple operations, reducing Samsung’s advantage of being the first company to mass-produce and deliver HBM4 memory to its customers. It could also potentially exacerbate the global memory chip shortage, resulting in longer delivery times and potentially higher prices for everyone.

Unless the two sides come to an agreement, the union will kick off the general strike on May 21. Supra-Company Union Samsung Electronics chapter head Choi Seung-ho also said that he has submitted a notice to the Seoul Yongsan Police Station that the group will hold a rally in front of the residence of Samsung Chairman Lee Jae-yong on the same day.

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