Samsung Electronics began reducing semiconductor production after failed negotiations with its labor union. The union rejected management's latest proposals and refuses to resume talks without a concrete agreement on performance-based bonuses.
Tens of thousands of workers are threatening a walkout that could disrupt the global supply chain for memory chips. This dispute targets Samsung's most profitable division during a period of high demand for artificial intelligence chips.
Samsung stock declined earlier this week as the risk of industrial action increased. Government officials warn that the economic fallout from a strike could exceed $67 billion.