Samsung Electronics is facing a new challenge as a labor union’s workers in South Korea went on strike, marking the first such walkout in the smartphone and chipmaking giant’s 55-year history.
The Nationwide Samsung Electronics Union (NSEU) stated a couple of days ago that its 28,000 members—just under a quarter of the firm’s total workforce in the country—would stage a one-day strike on June 7 following failed negotiations over pay and bonus arrangements. The union asked its members to take a day off on Friday, which falls between a public holiday on Thursday and the weekend.
Samsung’s chipmaking division, a key unit according to the union, is facing challenges. The unit is trying to reclaim its top position but is moving slowly behind competitors in producing AI processor chips. Son Woomok, a union leader, said to CNN that “many employees used their annual leave today,” and at one site, “all workers had taken leave, so replacement personnel were deployed.” Apart from this, he did not provide other details.
Anyhow, Samsung is trying hard to keep up with the competitors in the AI chip market, and apart from this recent employee walkout, Samsung claims there’s no impact on production. According to Reuters, Samsung has fallen behind its competitors, SK Hynix and Micron Technology, in providing chips used in artificial intelligence (AI) processors.
A Samsung spokesperson told CNN that “there is no impact on production and management activities” as a result of the one-day walkout. However, despite all the recent hard phases, Samsung is looking forward to a rebound in demand for smartphone devices, particularly those with AI features. This optimism comes after a great first quarter, and forecasts suggest high demand for the very AI chips where Samsung competes with other strong tech giants such as Intel.
