March 17, 2026 /SemiMedia/ — A potential strike at Samsung Electronics could disrupt chip production as labor tensions rise, adding pressure to an already tight global semiconductor supply driven by strong demand from AI data centers.

The company’s main union has started a vote on industrial action. Union leader Choi Seung-ho said production disruption is likely if talks fail, with a strike planned from May 21 for up to 18 days. Around 90,000 union members are eligible to vote, a large share of Samsung’s workforce in South Korea.

The union said any action could affect output at the company’s Pyeongtaek campus, one of its key semiconductor manufacturing sites. Industry observers note the site plays a central role in memory chip production, and even partial disruption could impact delivery schedules.

A Samsung official said even a short shutdown could hurt customer confidence and take years to recover. The company said it will continue discussions with employees.

The dispute centers on pay. The union is seeking a 7% base salary increase and changes to the bonus system, including removing a cap on performance pay and linking bonuses to operating profit. It said the current system does not reflect the industry upcycle.

Samsung has offered a 6.2% wage increase and additional bonuses for memory unit staff tied to profit growth. The company recently reported strong earnings, and analysts expect a sharp rise in annual operating profit this year.

Tensions have also been fueled by moves at rival SK Hynix, which accepted similar pay changes earlier, leading to a rise in union membership at Samsung. Analysts say any strike could further tighten supply in the memory market.