Samsung and a South Korean labour union could not reach an agreement on Tuesday. These negotiations were a last-ditch effort to salvage relations ahead of a planned strike on May 21.
Samsung’s three manufacturing sites in South Korea, Giheung, Hwaseong, and Pyeongtaek, all make cloud computing components, including memory manufacturing, which is already failing to meet demand. These sites, as well as Samsung’s competitor SK Hynix are two of only three companies in the world that make these components.
According to Seoul Economic Daily, a one-day rally from the South Korean workers union last month resulted in a 58 per cent drop in ram production. The union estimates the potential company losses from this upcoming strike could total 30 trillion won (C$27,551,058).
Multiple industries will be affected by this upcoming strike, as without these sites making components for RAM, as tech companies will have no memory to put into their devices and the AI industry will not be able to upgrade its data centres. This could lead to further delays, continued and exacerbated price hikes on products and components or outright cancellations of releases.
Sources: Gizmodo, Seoul Economic Daily
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