Samsung Union Approves Strike at Memory Chip Plants After Talks Fail

Asian equities extended losses for a fourth straight session, with South Korea's benchmark KOSPI falling about 1% as the market priced in the shock of an imminent labor action at Samsung Electronics. A full-scale, 18-day strike involving more than 47,000 workers at the world's largest memory-chip maker is set to begin Thursday, raising the risk of production disruptions across the global semiconductor supply chain, which is already tight due to AI data center buildouts.

Samsung Electronics' talks with its largest union collapsed overnight as union negotiators demanded the removal of a bonus cap, allocation of 15% of operating profit to worker bonuses, and that those terms be written into contracts, citing memory-chip maker SK Hynix's 10% profit-sharing arrangement.

Samsung negotiators accepted most of the demands, including a proposed 10% operating profit bonus pool and special compensation, but called the union's remaining requests unsustainable. "We deeply regret that the post-mediation process has concluded [without resolution] due to delays in decision-making by the management," Samsung Electronics Labor Union Chairman Choi Seung-ho told reporters at the National Labor Relations Commission in the city of Sejong.

" Japan's financial outlet Nikkei Asia reported that the strike would affect only the company's domestic plants, which are the base of its chipmaking operations.

The collapse in talks comes as Samsung shares surge on record profits, driven by soaring demand for memory chips, even as hyperscalers are set to deploy $700 billion in capex to build AI infrastructure in the US. TrendForce data show that Samsung is the world's largest memory chipmaker, with a 36% market share in DRAM chips and one-third in NAND Flash chips.

A Bank of Korea report to the president estimated a potential impact of up to KRW30 trillion in lost production. Samsung shares fell as much as 4.4% before reversing their losses.