[News] Samsung’s May Strike Seen Disrupting Up to 4% of DRAM Output, With Weeks-Long Recovery Risk
As global memory supply remains extremely tight amid the AI boom, Samsung’s looming large-scale strike is seen as further intensifying the strain. According to South Korean media outlets News1 and The Dong-A Ilbo, citing analysts, disruptions could reach 3–4% for DRAM and 2–3% for NAND, based on the production weight of Samsung’s Pyeongtaek and Hwaseong fabs.
As reported, the Samsung Electronics branch of the Samsung Group’s supra-enterprise labor union reaffirmed on the 23rd that it will proceed with an 18-day general strike starting on May 21, lasting through June 7.
For reference, News1 reports that wafer transfer volume during the night shift—an internal production indicator—declined following the union’s resolution rally on the 23rd, starting from 10 p.m.
Production in the foundry division fell by about 58.1%, while the Giheung S1 line saw a sharp drop of 74.3%, the report notes, adding that the memory business was relatively less affected, posting an overall decline of 18.4%, although DRAM processes recorded a steeper contraction.
Based on these disruptions, the union estimates that if the planned general strike materializes, total damages could reach 20–30 trillion won, the report adds.
Another semiconductor engineer cited by ZDNet warned that if fab staffing declines, equipment could gradually fall out of operation, triggering cascading disruptions across the line. In memory production, even inadequate equipment management alone could cut output by 10–20%, according to the report.
Big Tech Weighs on Larger-Scale Strike Risk
As highlighted by Global Economics, if supply of Samsung’s server DRAM and enterprise SSDs is disrupted, major cloud players such as Google and Amazon could face immediate setbacks in their data center expansion plans.
The Dong-A Ilbo also suggests that as strike risks come to the surface, global Big Tech firms are inquiring whether Samsung can secure sufficient chip supply, signaling growing worries over its external credibility and the stability of the supply chain.
Customers have reason to be concerned. News1 reports that even if the strike lasts 18 days, disruptions would likely continue afterward, as restarting and stabilizing automated production lines could take an additional two to three weeks.
As noted, this strike marks a significant escalation in scale compared to previous actions. According to News1. during Samsung’s July 2024 strike, participation was estimated at around 5,000 workers, or roughly 15% of total union membership. However, industry estimates cited by the report suggest that 30,000 to 40,000 workers could join the May strike, accounting for 30–40% of total membership. If realized, the scale would make it difficult to offset production losses through substitute labor.
SK hynix, Micron Benefit on Soaring Prices
According to TrendForce, Samsung remained the world’s largest DRAM and NAND supplier in 4Q25, with market shares of 36% and 28%, respectively. News1 notes that even if paper estimates of supply disruption remain at just 2–4%, it may still act as a key catalyst amplifying price pressures in an already tight market.
The Dong-A Ilbo notes that DRAM prices, which have already surged more than tenfold over the past year, could climb further due to the strike at Samsung Electronics.
ZDNet adds that in this scenario, competitors such as SK hynix and Micron are expected to benefit from accelerating memory price increases. Volatility is likely to be even more pronounced in high-performance server DRAM and enterprise SSD (eSSD) segments, where only a limited number of players are capable of mass production, the report notes.
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(Photo credit: Samsung)
