Concerns are growing that internal conflicts at Samsung Electronics could undermine its competitiveness in high-bandwidth memory (HBM). The Device Solutions (DS) division is threatening a total strike over demands for increased bonuses, while the Device Experience (DX) division expresses feelings of deprivation amid declining profitability and the withdrawal from the Chinese TV and home appliance market.
According to industry sources, the Samsung Electronics union's joint action committee plans to initiate a total strike starting May 21 if wage negotiations with management fail. A key issue is the demand for performance-based bonuses linked to operating profits, spurred by improved results in the DS division due to rising AI semiconductor demand.
The mood within the DX division is tense. Samsung recently confirmed its withdrawal from the Chinese TV and home appliance market, a decision attributed to aggressive pricing from local competitors and weak demand. Many in the DX division perceive this as a retreat from a core business.
Given that TVs and home appliances have long been vital to Samsung's global brand value, the anxiety among DX employees is palpable. While attention focuses on the DS division's impressive performance and the expanding AI semiconductor market, DX employees feel their contributions, especially amid risks like U.S. tariffs, are being overlooked.
The recent departure of the Donghaeng Union, which has many members in the DX division, from the joint action committee highlights dissatisfaction over the prioritization of DS bonus discussions at the expense of DX issues. The Donghaeng Union has called for fair representation and compliance with obligations regarding information sharing and non-discrimination.
A DX representative noted, "With nearly half of the company's workforce in the DX division, it will be difficult for management to fully accept the demands centered on the DS division. I believe the DS employees should make concessions before more extreme conflicts arise."
Industry analysts warn that Samsung's internal strife could negatively impact its competitiveness in HBM and other memory semiconductors. The DS division struggled in HBM competition until late last year but has since begun to regain its footing, though it has yet to establish fundamental competitiveness.
Experts emphasize that major tech clients like NVIDIA prioritize quality, yield, and delivery stability when selecting suppliers. If a strike occurs, the damage to customer trust could be more severe than short-term production disruptions.
Concerns are mounting that repeated halts in production due to strikes could lead to lower yields and compromised quality. HBM, which involves stacking multiple DRAM chips and advanced packaging, requires stringent process stability and quality control. Inconsistent yields could result in losing key clients.
An anonymous Samsung executive stated, "The union argues that a strike could result in losses of tens of trillions of won, while external estimates suggest that halting semiconductor production could cost 1 trillion won daily. HBM ultimately hinges on yield, and if production lines are repeatedly halted, we risk losing our status as a reliable supplier to key clients like NVIDIA, which is the most serious risk."
* This article has been translated by AI.
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