Samsung Electronics considers scaling down chip production to brace for strike impact

Samsung Electronics is bracing for the impact of its labor unions’ planned 18-day general strike, scheduled to start on May 21, activating contingency measures to minimize disruptions, including adjusting chip production processes and limiting new wafer input volumes. A potential production scale-down could also disrupt the global semiconductor supply chain, industry observers warned. According to industry officials on Thursday, the company has begun emergency management measures as the likelihood of a strike next week has increased, with the latest round of labor-management negotiations having ended without progress. The unions have rejected the possibility of further talks and reiterated their demands. Since the strike may cause large-scale production disruptions and quality issues stemming from workforce shortages in its chipmaking division, the company is considering a “warm-down” process. Chip plants typically require preemptive adjustments to production operations at least a week in advance because halting manufacturing processes midway can result in huge losses. “Unlike

Original source: Korea Times