Shares of competing memory chip manufacturers surged on Thursday as investors anticipated market disruptions from an 18-day worker strike at Samsung Electronics Co., Ltd. over unresolved bonus payment negotiations, as reported by Detik Finance.
Premarket trading saw Micron Technology, Inc. climb 3.9 percent and SanDisk Corporation advance 2.2 percent.
The labor dispute involves approximately 48,000 South Korean employees walking off the job following failed government-led mediation efforts.
Potential Impact on Global Chip Supply
Potential operational disruptions at Samsung could bolster rivals like Micron, SanDisk, and SK hynix Inc. if production capacities decrease.
The strike also sparks broader economic concerns for South Korea due to Samsung's vital role in global supply chains.
Union leader Choi Seung-ho explained that labor representatives had accepted the final terms presented by government mediators, but company management declined to compromise on the last remaining dispute.
"We express deep regret and feel disappointed but the union plans to go ahead with the strike according to the law," said Choi Seung-ho, Union leader.
Conversely, Samsung Electronics asserted that the labor union maintained demands that were unreasonable for business units currently enduring financial losses.
"The reason an agreement could not be reached is that accepting the labor union’s excessive demands would undermine the fundamental principles of company management," said Samsung Electronics in a statement.
Market Reaction and Analyst Views
Despite the labor tension, Samsung stock recovered from an early 4 percent drop to finish Thursday up 0.2 percent, while SK Hynix closed unchanged.
Mizuho TMT specialist Jordan Klein noted that global memory chip supplies are expected to remain tightly restricted.
"Going to remain well below DRAM and NAND demand all 2026 and probably all 2027.
Pricing should at least hold high levels after rising further near term," said Jordan Klein, Mizuho TMT specialist.
The strike highlights ongoing tensions between Samsung management and its workforce over compensation, particularly in light of the company's recent record profits driven by AI chip demand.
Investors are closely watching how the walkout affects production and pricing in the semiconductor market.
