May 20, 2026, 7:44 AM

Over 47,000 Samsung Electronics workers set to strike as wage talks break down, sending shares lower

More than 47,000 workers at Samsung Electronics are preparing to begin an 18-day strike on Thursday, May 21, following a breakdown in wage negotiations between the company's management and its labor union. The impending industrial action has raised concerns about potential disruptions to the global semiconductor supply chain.

Samsung Electronics shares listed on the Korea Exchange fell 3% after the failed negotiations, according to TipRanks. The company is the world's largest memory chipmaker and accounts for nearly a quarter of South Korea's exports.

The strike, which involves over 47,000 workers, stems from an impasse in talks regarding pay and bonus structures. The main point of contention is the union's demand for a complete overhaul of the bonus payment system.

According to ANI, the labor union spokesperson, Choi Seung-ho, stated that the company refused to accept a key demand on bonus payments, even after government-mediated talks. Samsung Electronics, as quoted in a Reuters report by ANI, indicated that "accepting the labour union's excessive demands would undermine the fundamental principles of company management."

Government-mediated negotiations over pay and bonuses collapsed last week, Reuters reported. Further talks between Samsung Electronics and its labor union were held on Monday, May 18, in a final effort to avert the strike. However, these discussions did not yield an agreement.

The potential walkout by a significant portion of Samsung's workforce could impact South Korea's economy and disrupt global supply chains, particularly for semiconductors. Executives from Samsung's chip division had urged the union to avoid striking, citing concerns from semiconductor customers such as Nvidia, Reuters reported.

Sources