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Samsung Strike Has No Immediate Impact on Memory Production, with No Shipment Shortages, Says TrendForce

The Samsung Electronics Union is reportedly planning to strike on June 7, TrendForce reports that this strike will not impact DRAM and NAND Flash production, nor will it cause any shipment shortages. Additionally, the spot prices for DRAM and NAND Flash had been declining prior to the strike announcement, and there has been no change in this downtrend since the announcement.

Samsung’s global share of DRAM and NAND Flash output in 2023 was 46.8% and 32.4%, respectively. Even though the South Korean plants account for all 46.8% of global DRAM production and about 17.8% of global NAND Flash production, TrendForce identifies four reasons why this strike will not impact production. Firstly, the strike involves employees at Samsung’s headquarters in Seocho, Seoul, where union participation in higher, but these employees do not directly engage in production. Secondly, this strike is planned for only one day, which falls within the flexible scheduling range for production.

Thirdly, June 6 is a public holiday in South Korea, and some employees had already applied for leave on June 7, allowing for preemptive adjustments in production scheduling and manpower allocation. Finally, fabs rely heavily on automated production and require minimal human labor. Therefore, the strike will not have any substantial impact on the future memory supply.

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