Global Big Tech Voices Concern Through AMCHAM: "Samsung Electronics Strike Could Undermine Credibility and Investment"

AMCHAM Issues Official Statement on Strike

"Supply Chain Diversification Could Accelerate... Competitors May Benefit"

Post-Mediation Talks Between Labor and Management Begin on 11-12; Internal Union Conflict Emerges as a Variable

With just ten days remaining until Samsung Electronics faces its second-ever general strike since its founding, concerns are mounting among global big tech companies and semiconductor supply chain partners. Experts warn that, amid an intensifying memory supply bottleneck driven by soaring demand for artificial intelligence (AI) semiconductors, any disruption to production at Samsung Electronics could reverberate throughout the global supply chain. Notably, the American Chamber of Commerce in Korea (AMCHAM)—whose member companies include key Samsung Electronics customers such as Google, Apple, and Qualcomm—has publicly voiced its concerns, fueling analysis that the ongoing labor-management conflict at Samsung Electronics is now escalating into a broader issue affecting the credibility and investment competitiveness of Korea’s semiconductor industry.

On May 11, AMCHAM expressed its concerns in a press release, warning that the labor dispute and potential strike at Samsung Electronics could negatively impact not only the global supply chain and industrial stability, but also Korea’s long-term investment competitiveness.

On the 23rd of last month, union members held placards and chanted slogans at the Samsung Electronics Labor Union Joint Struggle Headquarters rally in front of Samsung Electronics Pyeongtaek Campus in Pyeongtaek, Gyeonggi Province. Samsung Electronics Labor Union Joint Struggle Headquarters

AMCHAM emphasized, "Many of our member companies, whose businesses span AI, cloud infrastructure, automotive, advanced manufacturing, industrial technology, and energy, are highly dependent on a stable semiconductor supply chain based in Korea. In today’s tightly interconnected global economy, operational disruptions in strategic industries have the potential to trigger ripple effects across the entire global supply chain, extending far beyond individual companies or markets."

There is growing discussion that, as major companies seek to diversify their production and procurement bases to mitigate supply chain concentration risks, competing nations could benefit from this shift. In fact, in AMCHAM's recent ‘2026 Korea Business Environment Survey,’ Korea ranked third—down one place from the previous year—as the preferred location for global companies’ Asia regional headquarters, following Singapore and Hong Kong. AMCHAM explained that global companies are now considering labor uncertainty within the semiconductor industry as a significant factor in their assessments of Korea’s long-term investment environment and overall business stability.

James Kim, Chairman and CEO of AMCHAM, stated, "We are closely monitoring key issues, including the labor dispute at Samsung Electronics, that could impact the overall business and investment environment. In ongoing conversations with member companies and global business leaders, there is a growing emphasis on the importance of supply chain resilience, operational stability, and long-term business predictability."

AMCHAM, the largest foreign business association in Korea with more than 800 member companies, includes many of Samsung Electronics’ major customers such as Google, Apple, and Qualcomm. AMCHAM’s involvement signals that global capital and partner companies are now viewing Samsung Electronics’ business environment with increasing unease.

According to industry sources, one AI big tech company reportedly sent an email stating, "A strike at Samsung Electronics could cause serious losses to our business," and requested weekly updates from management on the strike and supply situation. In addition, global partners such as Applied Materials, Lam Research, and ASML—which supply equipment and materials to Samsung Electronics’ Pyeongtaek and Hwaseong plants—are also expected to face not only revenue losses if production lines are halted, but also setbacks to their future investment plans.

Meanwhile, labor and management at Samsung Electronics are entering last-minute negotiations over the size and criteria for performance bonuses, seeking a post-mediation settlement. Led by the Central Labor Relations Commission, the mediation process will be held over two days starting at 10 a.m. today. If a settlement is reached, it will carry the same legal effect as a collective bargaining agreement.

Participating in this post-mediation process are three key union representatives: Choi Seungho, Head of the Samsung Group Super Enterprise Labor Union’s Samsung Electronics branch; Vice Chair Lee Songyi; and Director Kim Jaewon. The union side has taken a firm stance, declaring that if satisfactory results are not achieved in this renegotiation, they will immediately launch a general strike. With a precedent set two years ago when post-mediation talks ended in failure and led to a strike, it remains uncertain whether this round of mediation will result in an actual agreement.

On the 23rd of last month, at the Samsung Electronics Pyeongtaek Campus in Pyeongtaek, Gyeonggi Province, union executives, including Choi Seungho, Chairman of the Super Enterprise Labor Union (center), chanted slogans at the Samsung Electronics Labor Union Joint Struggle Headquarters Rally. Photo by Kim Jinyoung

Before entering the post-mediation talks at the Central Labor Relations Commission’s Government Sejong Complex, Chairman Choi told reporters, "We continue to demand performance bonuses equivalent to 15% of operating profit, removal of the upper limit, and institutionalization of the bonus system. If the company does not take a position on institutionalization, we do not expect a settlement to be reached—even as early as today." He also reaffirmed the union’s position that the establishment of a company-wide common bonus pool to address disparities in performance bonuses between the semiconductor and other business divisions would not be included in this round of negotiations.

The union is strongly demanding transparent disclosure of the bonus calculation criteria and payment of performance bonuses at a level equivalent to 15% of operating profit. Given that Samsung Electronics’ operating profit for this year is estimated at approximately 300 trillion won, the union is essentially demanding a performance bonus of nearly 600 million won per employee in the semiconductor division. Management has promised industry-leading compensation, surpassing that of competitors, as a special reward. However, the company maintains that it cannot accept the institutionalization of the removal of the bonus cap.

With the bonus negotiation stance heavily tilted toward the semiconductor division, internal conflict within the union has become a new variable. The two major unions within the Joint Struggle Headquarters—the National Samsung Electronics Union (Jeonsamno) and the Samsung Electronics Labor Union Donghaeng (Donghaeng Union)—are demanding the establishment of a company-wide common bonus pool to correct the unreasonable performance bonus structure between the Device Experience (DX) and Device Solution (DS) divisions. However, Chairman Choi continues to adhere to his position that the company-wide pool will not be included in this round of negotiations.

This content was produced with the assistance of AI translation services.