Unionized workers at Samsung Electronics have staged their first-ever walkout.
The action by the world’s leading memory chip maker had no immediate impact on operations.
Samsung reports no work disruptions, and shares traded higher early Friday, June 7.
The 28,000-member National Samsung Electronics Union, representing about one-fifth of the company’s workforce, organised the walkout after several wage negotiations broke down.
Union officials did not disclose the exact number of participants.
Market analysts suggest that Samsung likely made work adjustments to mitigate the impact of the strike.
It fell on a workday between a public holiday in South Korea and the weekend.
Additionally, Samsung’s highly automated chip-fabrication facilities typically require minimal human labor.
Since January, Samsung’s management and union leaders have negotiated wages, bonuses, and other working conditions without agreement.
A Samsung spokesman said: “[The company management] has been sincere in talks with the union and it will continue to be.”
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The labor action occurred at a pivotal time for Samsung.
The company aimed to regain its competitive edge in the semiconductor industry amid rising demand for advanced chips driven by the artificial intelligence boom.
The AI-driven recovery has helped Samsung’s chip-making business rebound after four consecutive quarters of losses, with net profit more than quadrupling in the first quarter.
Despite this turnaround, Samsung continues to face a challenging business environment.
In May, the company replaced its semiconductor business chief due to concerns over lagging in the development of high-bandwidth memory products, crucial for AI and high-performance computing systems.
