Talks between labor and management at Samsung Electronics on the 20th failed to reach an agreement, and as the labor union declared it will launch a general strike starting tomorrow, major foreign media outlets simultaneously reported the news as breaking alerts.
Bloomberg said that day that with negotiations between Samsung Electronics and its largest union breaking down, the likelihood of a strike that could disrupt operations at the world's biggest memory chipmaker is rising.
It added that because Samsung Electronics is the world's largest supplier of semiconductors used across the board—from data center servers to devices such as smartphones and electric vehicles—the collapse of these talks could put the entire global tech supply chain at risk.
Bloomberg also reported earlier that the American Chamber of Commerce in Korea said in a statement this month that any significant production disruptions or operational uncertainty at Samsung Electronics could place additional strain on the global memory chip market.
Reuters likewise issued a breaking alert on the failure to reach a labor deal at Samsung Electronics, noting that the situation has led to 48,000 workers walking off the job, which could threaten the health of the Korean economy and potentially disrupt the global chip supply.
AFP said that Samsung Electronics is a major producer in the semiconductor industry, with chips used in everything from artificial intelligence (AI) to home appliances, and reported projections that the strike could cause serious disruptions and losses.
The South China Morning Post (SCMP) in Hong Kong also reported that Samsung accounts for about a quarter of Korea's exports and is the world's largest memory chip manufacturer, adding that production disruptions at Samsung could hit the global chip supply at a time when an AI boom is already causing shortages.
Labor talks at Samsung Electronics ultimately broke down that day even during the government's post-mediation procedure. The Samsung Electronics chapter of the Samsung Group Supra-enterprise Labor Union said, "At around 10 p.m. on the 19th, the labor union agreed to the mediation plan proposed by the National Labor Relations Commission, but management expressed its refusal," adding, "The labor union will lawfully begin a general strike tomorrow as scheduled."