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Samsung Reportedly Activates Emergency Management System for Semiconductor Production Lines

By: M 3 hours ago

According to a South Korean media report, Samsung Electronics activated an emergency management system for its semiconductor production lines one week before a general strike.

Industry sources revealed that in response to the potential strike, Samsung has taken a series of preemptive measures, such as limiting the supply of new wafers in the initial stages of production lines and adjusting its product mix to focus on high-value-added products like High Bandwidth Memory (HBM) and advanced process technologies, in order to minimize losses.

Since the semiconductor industry differs from other sectors, production volume and quality must be managed before a strike begins to keep losses to a minimum.

According to the Samsung Electronics branch of the Samsung Group's labor union, more than 43,286 people have applied to participate in the strike. General analysis suggests that if over 40,000 workers actually go on strike, Samsung Electronics’ semiconductor plants could be forced to halt operations.

Additionally, union leaders cited a letter from Samsung Electronics stating that the company proposed resuming wage negotiations with the union on Thursday. The National Labor Relations Commission of Korea has also called for another round of talks on Saturday. However, Choi Seung-ho, head of Samsung Electronics' largest labor union, said: “There is no reason to continue dialogue unless bonus payments and transparency are institutionalized.” The union has stated that it will respond to negotiations only after the strike ends.