"The tensions became clear on April 23, when the union organized a large-scale protest to demand a larger share of the profits from the chip division. Although it was a demonstration and not a full-scale strike, this is seen as an important signal that the conflict is escalating."
"The union has announced that employees intend to walk off the job for 18 days starting May 21 if no agreement is reached with management. This threat is causing uncertainty among investors, precisely at a time when demand for advanced memory for AI applications is growing rapidly."
"The conflict centers on profit sharing. The union is demanding that a larger portion of operating profits go to employees of the chip division. An earlier proposal from Samsung, which included bonuses and wage increases, was rejected."
Samsung Electronics' shares are underperforming compared to SK Hynix due to escalating tensions with its workforce. A large-scale protest on April 23 highlighted demands for increased profit sharing from the chip division. The union plans an 18-day walkout starting May 21 if no agreement is reached, creating investor uncertainty. While confidence in high-bandwidth memory growth remains, the potential strike poses a risk to Samsung's stock valuation. Despite strong financial performance in the semiconductor division, the situation is precarious.
Read at Techzine Global
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