April 27, 2026 /SemiMedia/ — Samsung’s union said chip output at the company’s South Korea plants dropped on April 23, with wafer foundry production down about 58% and memory output falling around 18%, after workers joined protests and missed overnight shifts.

The disruption was linked to a protest at the company’s Pyeongtaek complex, one of its largest chip manufacturing hubs. Many workers joined the rally and did not return for the overnight shift, affecting operations that typically run around the clock in three shifts.

The incident comes at a time when demand for semiconductors is rising, driven by AI and data center expansion. Foundry and memory production are both under pressure to keep up, and even short-term interruptions can ripple through the supply chain.

Samsung and its union remain in talks over pay and bonus terms. The company has offered a 6.2% increase in base salary, along with stock incentives and improved benefits, but no agreement has been reached.

Union members are pushing for changes to the bonus structure, including removing caps tied to performance. If negotiations fail, further action is planned in May, which could add uncertainty to production in the coming weeks.