SEOUL, May 14 (AJP) - Samsung Electronics has started scaling back wafer output at its chip facilities in a preemptive move to protect quality integrity, as the company braces for a union walkout that could begin as early as Thursday, a source close to the matter told AJP.
The production cutback marks the first tangible operational impact of the labor dispute on Samsung's critical chip manufacturing operations.
Talks have reached an impasse. The representative union has rejected a call from the National Labor Relations Commission to continue dialogue over the weekend, saying it has no intention to engage "unless the management presents a proper proposal."
Samsung is the world's largest memory chip supplier, and any yield disruption at its fabs risks aggravating a market already stretched thin by surging AI demand.
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