Samsung Electronics and its largest labor union remain deadlocked after government-mediated negotiations failed on Tuesday. The union is demanding a larger share of profits from the AI boom and plans an 18-day strike starting May 21.
Analysts estimate a walkout could disrupt 4% of global DRAM output. A prolonged production halt could cost Samsung more than $20 billion in losses. The potential disruption threatens the global supply chain for advanced AI chips.
Samsung’s Seoul-listed shares closed down 2.3% on Tuesday as the impasse continued. The dispute impacts major customers including Google, Amazon, Apple, and HP. Investors are monitoring the situation for potential price volatility in the stretched semiconductor market.