On May 16, Samsung's chairman Lee Jae-yong made a public apology at Seoul's Gimpo Business Aviation Center. This unusual gesture showed how serious the situation had become. Three days later, mediation talks between Samsung and its workers have collapsed. Around 47,000 unionized workers plan to stop working on May 21, marking the largest strike in Samsung's history and the semiconductor industry.
The strike will last until June 7. Samsung produces high-bandwidth memory (HBM), tiny chips essential for artificial intelligence technology used by companies like NVIDIA. Samsung controls about one-third of the global DRAM market, and only three companies worldwide supply HBM at this scale. A three-week pause at Samsung's factories in Pyeongtaek, Hwaseong, and Giheung would affect the global AI industry immediately.
The dispute centers on worker bonuses. The National Samsung Electronics Union, led by Choi Seung-ho, wants bonuses increased to 15% of Samsung's operating profit. Samsung has offered only 10%, while keeping the current 50% salary cap. In September 2025, competitor SK Hynix settled a similar dispute by agreeing to 10% of profits.
South Korea's government has become involved. President Lee Jae-myung and Prime Minister Kim Min-seok have called for negotiation. Samsung warns that daily losses could exceed 668 million dollars. Some estimates suggest total economic damage could reach 66.7 billion dollars. If the strike proceeds, tens of thousands of workers will not report to work on Thursday morning.