As talks between labor and management at Samsung Electronics have been suspended and the possibility of a strike is growing, some analysts say the supply chain for products mass-produced on legacy (older) nodes such as power management ICs (PMICs) could be hit first. With TSMC and Samsung Electronics focusing on advanced nodes and dialing back mature-node operations, supply has fallen short of demand, and if Samsung Electronics goes on strike and supply declines, a supply crunch could occur.
However, there is also an outlook that a supply crunch may not materialize, considering the possibility of a dramatic settlement in labor talks and the fact that last year's 2024 general strike did not actually disrupt production. A semiconductor industry official said, "With management having accepted part of the union's proposals and presented a deal at the top level in the industry, it would be difficult for the union to push ahead with a strike," adding, "Because there were no disruptions to production lines during the 2024 strike, even if it happens this time, it is unclear whether a supply shortage would occur."
According to the industry on the 1st, the Samsung Electronics union said it secured the right to strike with a 93.1% approval rate in a strike ballot held from the 9th to the 18th of last month. It plans an 18-day general strike from May 21 to June 7. Samsung Electronics proposed top-of-the-industry compensation and engaged in talks, but negotiations were suspended after the union rejected the offer.
The industry is reviewing the possibility of supply chain disruptions. Some expect the first blow will land on legacy nodes where Samsung Electronics has reduced operations. Samsung Electronics mass-produces not only PMICs but also driver ICs on mature nodes.
PMICs used in AI servers and automobiles have seen process prices soar. Texas Instruments (TI) in the United States is also reportedly applying price hikes of up to 85% on PMICs and other products starting this month. Foundry corporations focused on legacy nodes, such as UMC, VIS and PSMC, are also understood to be planning price increases of around 10% starting this month.