Samsung's Chip Production Declines Due to Workers' Strike

Jakarta (ANTARA) - Samsung’s chip production has reportedly decreased due to a strike by more than 40,000 company workers at the semiconductor plant complex in Pyeongtaek, South Korea, since the beginning of last week. Citing Sam Mobile on Monday, the strike has caused a significant decline in Samsung’s semiconductor chip production. The workers’ union stated that foundry production dropped by around 58%, while memory chip production decreased by 18% during the night shift on Thursday (23/4) local time. The striking workers did not report for the night shift starting from Thursday at 22:00 until Friday (24/4) morning at 06:00. In addition, the workers’ union is also demanding that around 15% of operational profits be allocated as performance bonuses for union members. Samsung’s semiconductor plant is known to operate 24 hours a day with a three-shift system, so disruptions to one shift will have a considerable impact on the production process. The strike is occurring amid high global chip demand, as Samsung is trying to increase supply to meet market needs. To date, company management is still negotiating with the workers’ union, though no agreement has been reached between the two parties.