Jakarta \u2014 The global memory chip shortage crisis has rippled\nthroughout the industry. Several electronic device manufacturers have\nannounced price increases for products due to rising production costs\nstemming from expensive components.<\/p>\n
This shortage has also affected the artificial intelligence (AI)\ntechnology industry, as demand for high-performance chips or HBM\n(high-bandwidth memory) has surged amid limited supply.<\/p>\n
Amid the crisis that has persisted since late 2025, problems have\nemerged at one of the world\u2019s largest chipmakers. The trade union at\nSamsung Electronics in South Korea has threatened to stage massive\ndemonstrations in May 2026.<\/p>\n
These strikes, which would impact chip production, could exacerbate\nthe ongoing crisis.<\/p>\n
\u201cI predict there will be disruptions to [chip] production,\u201d said Choi\nSeung-ho, leader of the Samsung Electronics Labour Union (SELU), last\nweek, according to Reuters.<\/p>\n
Approximately 90,000 union members out of Samsung\u2019s total 125,000\nworkers are eligible to vote in a ballot lasting until Wednesday, 18\nMarch.<\/p>\n
If workers fail to reach an agreement, they plan to stage\ndemonstrations for 18 days beginning 21 May 2026, according to Choi. He\nstated that large-scale strikes could affect roughly half of production\nat Samsung\u2019s expansive semiconductor complex in Pyeongtaek, south of\nSeoul, the capital.<\/p>\n
A Samsung official who requested anonymity said that production\nshutdowns caused by even a single strike could damage customer trust and\ntake years to recover from.<\/p>\n
A Samsung spokesperson said the company would continue dialogue with\nemployees on the matter.<\/p>\n
Workers Share No Benefits Despite Company Profits<\/p>\n
Samsung workers have highlighted wage disparities with employees at\ncompeting companies. Union membership at Samsung has grown significantly\nfollowing SK Hynix\u2019s acceptance of union demands regarding compensation\nreform in September 2025.<\/p>\n
\u201cThe chip industry is booming, but those business profits are not\nflowing to us. That is why we are fighting,\u201d said a union\nrepresentative.<\/p>\n
Over the past three months, more than 100 union members have left\nSamsung to join other companies such as SK Hynix. Choi said SK Hynix\nagreed to plans to remove bonus caps and allocate 10 per cent of\noperating profits to bonus funds.<\/p>\n
Samsung union members are demanding a 7 per cent increase in base\nsalary, elimination of performance-based payment caps set at 50 per cent\nof annual base salary, and introduction of a bonus fund based on\noperating profits.<\/p>\n
The Samsung union views the 50 per cent bonus cap criterion as\noutdated and lacking transparency.<\/p>\n
Samsung recorded record fourth-quarter profits in 2025, and analysts\nestimate that annual operating profits will increase more than fourfold\nto over 200 trillion won this year.<\/p>\n
In an internal memo to employees earlier this month, Samsung stated\nit was attempting to reach a 2026 wage agreement by offering a\ncompensation proposal described as \u201cunprecedented\u201d.<\/p>\n
The proposal includes a 6.2 per cent salary increase and a special\nbonus for memory chip division employees equivalent to 100 per cent of\nbase salary for every 100 trillion won of annual operating profit.<\/p>\n
\u201cBecause the semiconductor business experiences significant profit\nfluctuations depending on market conditions, Samsung allocates operating\nprofits in a balanced manner for future investment, shareholder returns,\nand employee compensation,\u201d the spokesperson said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/2026-crisis-worsens-as-large-scale-labour-strikes-demand-salary-increases-1773737953", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }