SEOUL, March 08 (AJP) - Unionized workers at Samsung Electronics on Monday begin a 10-day vote on whether to launch a strike, raising fresh concerns over chip supply at a time of surging demand for artificial-intelligence memory.
The ballot, which runs from March 9 to 18, could pave the way for a joint protest next month and a full-scale strike from May 21 to June 7 if a majority of union members approve the action.
The vote follows a breakdown in wage negotiations after the National Labor Relations Commission suspended mediation between Samsung and its three major labor unions — the Samsung Electronics Labor Union (SELU), the National Samsung Electronics Union and Samsung Electronics Co. Union.
Together the unions represent more than 90,000 employees, roughly 70 percent of Samsung Electronics’ 129,000 workforce, making the vote one of the most consequential labor actions in the company’s history.
Union leaders say the strike authorization vote is necessary to secure legal rights for industrial action.
“We aim to secure the legal right to strike by mid-March,” said Choi Seung-ho, chairman of SELU and head of the unions’ joint negotiation committee, during a livestream last week. “We expect the vote to pass and plan to take a long-term approach to negotiations.”
The dispute centers on the company’s excess profit incentive (OPI) scheme, which the unions want to reform.
Labor groups are demanding the removal of the current ceiling on OPI payouts — capped at 50 percent of annual salary — arguing the limit prevents workers from benefiting fully during strong profit cycles.
Samsung rejected the proposal, saying removing the cap could create compensation disparities between divisions.
The company instead offered to maintain the existing limit while allowing employees to choose between operating profit or economic value added as the basis for calculating incentives.
Management also proposed special payouts if certain targets are met, including an additional 100 percent OPI bonus for memory-chip employees if operating profit surpasses 100 trillion won ($75 billion).
Union members say the plan still falls short, pointing to rival SK hynix’s performance bonuses — reportedly reaching 2,964 percent of base salary in some cases — as evidence Samsung employees are being under-rewarded.
Union leaders have also stirred controversy after warning that employees who refuse to participate in strike actions could face consequences.
During a livestream announcement, union officials said they would monitor offices and keep records of workers who continue working during a strike, suggesting such employees could face disadvantages in future negotiations.
If approved, the strike would mark Samsung Electronics’ second major labor stoppage, following the company’s first strike in July 2024 that lasted about a month.
While production disruption during the earlier strike proved limited, analysts say the stakes may be higher this time.
Union membership has expanded significantly since 2024, particularly within the semiconductor division that generates the bulk of Samsung’s profits.
Industry observers warn that labor disruptions could affect the production ramp of next-generation HBM chips, a critical component for AI accelerators produced by Nvidia.
Samsung recently began mass production of HBM4, intended for Nvidia’s next-generation AI platform known as Vera Rubin. The chips typically require four to five months of wafer processing followed by up to two months of packaging, meaning production will be in full swing during the proposed May strike window.
“Semiconductor manufacturing is highly automated, so a strike may not immediately halt production,” an industry official said. “But even the perception of instability can worry customers and investors.”
The labor dispute comes at a sensitive time for Samsung’s semiconductor business.
The company has been trying to regain ground in the fast-growing HBM market after losing early momentum to SK hynix, which has secured key supply contracts with Nvidia.
SK hynix controlled roughly 53 percent of the HBM market in the third quarter of 2025, compared with about 35 percent for Samsung.
Any disruption to Samsung’s memory production schedule could strengthen SK hynix’s advantage in the AI chip supply chain.
The possibility of a strike also adds to broader uncertainty facing Samsung Electronics as geopolitical tensions rise.
The company has significant exposure to global consumer markets, including the Middle East, where escalating conflict between the United States, Israel and Iran threatens to dampen economic sentiment.
Samsung remains the leading smartphone vendor in the region, with roughly 34 percent market share as of the third quarter of 2025, while the Middle East also represents a major market for its home appliance business.
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