Samsung Electronics and its labor union reached a standstill on May 12. A walkout is now scheduled for May 21.
Experts warn the strike could cost Samsung as much as $20 billion. The disruption threatens the production of advanced semiconductors critical for global customers.
Major tech firms including NVIDIA, Apple, and Google recently made multi-billion dollar manufacturing commitments. These companies rely on a stable supply of high-end chips from Samsung.
Samsung shares fell over 2% as negotiations stalled. The potential walkout introduces supply chain risks for technology sector ETFs like SMH and QQQ.