Samsung Electronics faced a sharp selloff on Wednesday after wage talks with its South Korean union collapsed, moving the threat of an 18-day strike closer and raising concerns over global memory-chip supply. Shares initially fell as much as 6%, wiping roughly $66 billion off the company’s market value, before government intervention helped trim losses. The union, which represents over 90,000 members or more than 70% of Samsung’s local workforce, is demanding that 15% of operating profit be set aside for performance bonuses, while management has offered 10%.
The dispute has intensified following Samsung’s record first-quarter operating profit of 57.2 trillion won, with its chip business alone contributing 53.7 trillion won. Workers argue the AI-driven profit surge entitles them to a larger share; management insists cash must fund capacity expansion and research to compete with SK Hynix and TSMC. The union warned that more than 50,000 workers could walk out from May 21 if no deal is reached, a move that analysts at Jefferies estimate could cut global memory-chip production by around 3%.
The risk of a strike comes as memory supply is already tight due to booming AI demand. Samsung’s difficulties lifted rival stocks: Micron Technology shares rose in premarket trading, with the company’s entire 2026 high-bandwidth memory supply already sold out. Micron’s stock has surged more than 800% over the past year, and revenue nearly tripled to $23.8 billion in its fiscal second quarter. Sandisk, a competitor in NAND flash, also moved higher, while South Korea’s SK Hynix gained in local trading.
South Korean Prime Minister Kim Min-seok urged continued dialogue, calling the fallout a national economic concern. Samsung said it regrets the breakdown and will keep working to avoid a worst-case scenario. However, the May 21 strike deadline remains live, and investors continue to monitor the labor negotiations, AI server demand, and memory-chip pricing.
