SEOUL, South Korea: Samsung Electronics’ labour union has suspended plans for a major general strike after reaching a tentative wage agreement with management, easing immediate concerns over disruption at the world’s largest memory chipmaker.
The union announced that the planned strike, which was due to begin on May 21 and continue until June 7, would be postponed until further notice following progress in negotiations.
The labour dispute had raised alarm in South Korea’s semiconductor industry, where Samsung plays a critical role in global supplies of memory chips used in artificial intelligence systems, smartphones and consumer electronics.
Under the tentative agreement, Samsung agreed to provide a special semiconductor performance bonus equivalent to 10.5 percent of business performance earnings without imposing a cap, according to local media reports.
Union members are expected to vote on the proposed deal between Friday and Wednesday.
However, uncertainty still surrounds the agreement after a group of shareholders announced plans to pursue legal action against the wage arrangement, describing it as unlawful.
Bonus payments
The labour standoff had intensified earlier this year after unionised workers overwhelmingly approved strike action in a March ballot. According to the union, 93 percent of the 66,019 workers who participated in the vote supported industrial action over bonus payments and compensation issues.
Union representatives previously described the vote as a “strong warning” to management to respond to workers’ demands amid Samsung’s soaring profits linked to the global artificial intelligence boom.
Samsung Electronics has seen its market value surge sharply over the past year as demand for advanced AI chips and high-bandwidth memory products accelerated worldwide.
The company recently expanded production of next-generation HBM4 chips, considered essential for powering large-scale AI data centres and advanced computing systems.
Analysts said a prolonged strike could have disrupted global semiconductor supply chains at a time when the AI sector remains heavily dependent on Samsung’s memory chip output.
The latest development temporarily reduces immediate risks to production, though labour tensions may continue depending on the outcome of the union vote and potential legal challenges to the agreement.
