Samsung Workers Threaten Strike, Raising Chip Supply Risks

Samsung is seeing huge demand for its memory products thanks to the rapid growth of AI and data centres. While the company is working to meet customer needs, it may suffer a setback as workers are preparing for a possible strike. If plans go forward, the global chip supply could be disrupted.

Samsung workers vote on strike amid solid chip demand

According to Reuters, Samsung workers have begun voting on a plan to strike in May 2026. About 90,000 of the 125,000 unionized workers in South Korea are eligible to vote. If the strike happens, it could last 18 days from May 21 and affect about half of Samsung’s chip production at its factory in Pyeongtaek.

This could make things worse for the company, as even a single strike might damage customer trust and take years to recover. The company added that it will continue to talk with workers “in a sincere manner.” The reason for the strike is growing frustration over the pay gap. Samsung employees feel they are earning less than workers at rival firms. After SK Hynix agreed to improve pay in September, more Samsung workers joined the union.

“The chip industry is booming, but those gains aren’t trickling down to us. That’s why we’re fighting,” said Choi Seung-ho, leader at the Samsung Electronics Labour Union (SELU). The union is asking for a 7% increase in base wages, the removal of the 50% cap on performance pay, and a new bonus pool based on operating profit. They say the current system is outdated and opaque.

Earlier this month, Samsung tried to reach a 2026 wage agreement by offering what it called “unprecedented” compensation. The company proposed a 6.2% pay increase and special bonuses for workers in the memory chip division.

Samsung saw record-breaking profit in the fourth quarter of 2025. Early forecasts suggest its annual operating profit will more than quadruple to over 200 trillion won ($134 billion) in 2026. This has likely led workers to feel they are not receiving a fair share of the company’s growth.