Negotiations between Samsung Electronics and its union broke down after Wednesday talks, and union leader Choi Seung

Negotiations between Samsung Electronics and its union broke down after Wednesday talks, and union leader Choi Seung — ho said more than 70,000 unionized workers will begin an 18‑day strike from Thursday;

Samsung Electronics faces an immediate labor stoppage after negotiations with its union collapsed in a Wednesday session, and union leader Choi Seung — ho said the union will begin an 18‑day strike from Thursday. The walkout threatens the company’s complex semiconductor operations at a moment of surging demand for memory chips driven by artificial intelligence deployments, raising concern about downstream impacts on global tech supply chains.

Choi, who represents a union of more than 70,000 workers, said both sides blamed each other for the breakdown and that management refused a government‑mediated proposal; he declined to disclose the proposal’s terms. Management likewise faulted the union for the impasse. The dispute follows days of last‑minute talks, including sessions convened by government officials, that failed to produce a deal.

The union’s key demands are a formal commitment from Samsung to allocate 15% of its annual operating profit to employee bonuses and the removal of existing bonus caps, which currently limit bonuses to 50% of annual salaries. Those demands form the core of the union’s negotiating position and are nonnegotiable for its leadership in this round of bargaining.

Samsung has rejected the union’s package as excessive, arguing the semiconductor business is highly cyclical and that the proposed terms would strain units that are still loss‑making. Samsung’s recent results are central to the dispute: the company reported that operating profit for January — March jumped eightfold to a record 57.2 trillion won ($38 billion), a factor the union cites to justify its claims for a larger share of profits.

The timing of the stoppage amplifies its potential effect: Samsung and rival SK Hynix together produce about two‑thirds of the world’s memory semiconductors, and officials warn a strike could further tighten supplies. Prime Minister Kim Min‑seok warned the walkout could cause up to 100 trillion won ($66 billion) in economic damage by disrupting delicate manufacturing processes. Lee Jun of the Korea Institute for Industrial Economics and Trade said the stoppage could push up memory prices, delay AI infrastructure investments abroad and ripple into smartphone and consumer‑electronics production.

The government has signaled it may take extraordinary measures while urging both sides back to the table. Labor Minister Kim Younghoon arranged talks that continued through Wednesday, and officials have threatened to invoke rarely used emergency powers to force a settlement. Separately, the Suwon District Court on Monday partly granted Samsung’s request for an injunction, ordering unions to maintain staffing levels to protect facilities and materials and barring occupation of key sites; both the company and the unions said they would continue negotiating.