May 20, 2026 /SemiMedia/ — Samsung Electronics is preparing for what could become the largest strike in the company’s history after labor negotiations with unions collapsed again on May 20.

The union plans to begin a full-scale strike on May 21, with industrial action scheduled to continue through June 7. In a vote held in mid-March, 93.1% of participating union members supported strike action, with more than 66,000 workers involved in the ballot process.

Concerns over potential disruption to the global memory chip supply chain have intensified as Samsung remains one of the world’s largest DRAM and NAND manufacturers.

Ahead of the strike, the Suwon District Court in South Korea partially approved Samsung Electronics’ injunction request on May 18, ordering unions to ensure that industrial action does not disrupt semiconductor production or damage wafer materials and critical manufacturing facilities.

Semiconductor manufacturing requires continuous 24-hour operation, and even short interruptions can affect yields, equipment stability and production recovery timelines. Industry observers said the court ruling effectively limits the union’s ability to shut down key semiconductor production lines completely.

Samsung Electronics has already activated emergency management measures for its semiconductor operations, including reducing wafer input volumes in advance and prioritizing production of higher-value products such as high-bandwidth memory (HBM).

The dispute comes as demand for AI-related memory products continues to surge globally. Analysts warned that prolonged labor disruption could affect customer confidence in supply stability, particularly for HBM products used in AI servers and data center infrastructure.

The two sides remain divided over performance bonus calculations. The union is demanding that bonuses be linked to operating profit instead of economic value added (EVA), while also seeking a system that allocates 15% of operating profit as uncapped incentive compensation.