Samsung Electronics' labor union has voted overwhelmingly to initiate dispute proceedings following a breakdown in wage negotiations, raising concerns over potential disruptions to the supply of HBM4 memory for Nvidia's next-generation AI accelerators.
According to eToday and the Yonhap News Agency, Samsung's union coalition conducted a vote among all members from March 9 to March 18, 2026, on whether to proceed with dispute actions. The motion passed with 93.1% approval, triggering plans to commence these actions after the failed salary talks.
Dispute actions refer to measures such as work stoppages or slowdowns that unions can legally undertake under South Korean labor laws to improve working conditions without facing civil or criminal liability. These actions can significantly disrupt normal business operations.
Amid escalating global uncertainties driven by Middle East tensions, this strike could inflict substantial losses. Industry watchers note that Samsung, which recently managed to rebound after a prolonged stagnation, may once again face operational challenges.
The union coalition stated that most members believe Samsung management's proposals do not align with its "talent-first" principle, prompting phased actions to enforce their demands. The plan includes holding a rally on April 23 and officially launching a strike in late May.
The wage negotiation demands cover three key areas: transparency in performance bonus calculations, the removal of caps on performance bonuses, and a 7% salary increase. The Chosun Daily reported that the largest point of dispute is abolishing the performance bonus cap. The union argues that Samsung should apply the same standard as SK Hynix, which abolished its own performance cap and allocates 10% of its operating profit to a performance bonus fund.
Samsung, however, is a much larger company than SK Hynix that has far more diverse businesses, with its foundry, smartphones, home appliances, and chip design divisions having different levels of performance. The Chosun Daily posits that eliminating the bonus cap could slash the funds available for investment.
If the strike materializes, it would be larger than Samsung's first union-led strike in 2024, during which workers demanded higher pay. With union membership growing from around 32,000 members to 66,000 today, including roughly 50,000 workers in the company's Device Solutions (DS) semiconductor division, this strike could disrupt Samsung's HBM supply chain.
A senior union official said that the company's chip output could drop to almost half its normal level if the strike goes on, according to People Matters. This would impact the world's access to memory chips, as the company produces a significant portion of South Korea's DRAM and NAND chips. With this vote escalating the conflict between Samsung's labor and management, the industry is closely watching for any impact on the company's operations.
Article translated by Lily Hess and edited by Jack Wu
