Samsung Electronics Faces Production Disruption: Foundry Output Plunges 58% on Day of Union Protest

by Kim Jinyeong

Published 24 Apr.2026 17:13(KST)

Memory Line Production Output Drops by 18%

As the Samsung Electronics labor union signaled the possibility of a general strike in May with a large-scale resolution rally, it was found that production performance at Samsung Electronics' semiconductor lines dropped sharply during the night shift on the day of the protest.

According to industry sources on April 24, during the night shift (from 10:00 p.m. on April 23 to 6:00 a.m. on April 24) when the union held a large-scale resolution rally at Samsung Electronics’ Pyeongtaek plant, production output at the company’s memory and foundry lines both declined across the board.

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

For the memory lines, a significant downward trend was observed at both the Hwaseong and Pyeongtaek campuses, with total production output decreasing by 18.4%. At the Hwaseong campus, the drop by line was as follows: ▲Line 15 fell by 33.1%, ▲Line 16 by 11.3%, and ▲Line 17 by 13.1%.

The situation was similar at the Pyeongtaek campus, which is focused on cutting-edge processes. The ▲P2D line saw the sharpest decrease at 24.6%, followed by ▲P1D at 23.1%, ▲P3D at 11.0%, ▲P1F at 10.0%, and ▲P2F at 3.2%.

During the same period, overall production output in the foundry division plunged by 58.1%, effectively being cut in half. By line, the impact was most pronounced at the Giheung and Hwaseong plants. The ▲Giheung S1 line saw the largest decline at 74.3%, while the ▲Hwaseong S3 line dropped by 67.8% and the ▲Pyeongtaek S5 line by 42.7%.

The reason the foundry lines experienced a greater decline than the memory lines is attributed to the unique complexity of foundry processes and differences in operating methods. Memory production involves mass-producing a relatively small number of standardized products (such as DRAM and NAND), and the highly structured process means that once a line is stabilized, the level of automation is very high. In contrast, foundry operations must simultaneously manufacture dozens or even hundreds of products, each with different designs for different customers, making the involvement of skilled personnel essential at various steps in the process.

Samsung Electronics Cleanroom Semiconductor Production Site

As it has been confirmed that the labor union’s collective action led to manpower shortages and a tense atmosphere at the production sites, resulting in tangible disruptions to production, industry concerns are expected to grow even further. Semiconductor manufacturing is characterized by a continuous process that operates 24 hours a day without stopping, so even short-term manpower departures or decreased concentration can have an immediate impact on overall production yield and output. While Samsung Electronics has refrained from making an official statement on this issue, internally, there are concerns that if the labor-management conflict becomes protracted, it could trigger emergency situations regarding the ability to meet customer delivery deadlines and maintain quality control.

An industry official stated, “The Trade Union Act requires that ‘security work’-tasks to prevent damage to facilities and spoilage or deterioration of raw materials and products-must continue as normal even during labor disputes. Since wafers can suffer irreversible damage if they are not processed within their waiting time limits, essential personnel are needed to work as usual during a strike to prevent losses of wafers and production facilities.”