All eyes are on South Korea today as officials bid to avert a strike by more than 45,000 Samsung workers that could impact global semiconductor supply chains.

With a planned walkout set to begin on 21 May, Samsung Electronics and its workers’ unions began what could be a final round of talks today (18 May), following the collapse last week of a first round of South Korean government-mediated negotiations, according to Reuters.

The threatened 18-day strike comes amid an already severe global shortage in memory chips – essential components in AI data centres, smartphones and laptops – that has fuelled massive profits at Samsung and its peers in recent months.

The dispute centres on Samsung’s performance-based bonus system. According to CNBC, the union is seeking bonuses equivalent to 15pc of Samsung’s operating profit, plus other measures, while Samsung’s management has countered with an offer of 10pc of operating profit.

The economic stakes could hardly be higher. CNBC quotes prime minister Kim Min-seok, who estimates direct strike losses at 1trn won ($664.7m), potentially rising to 100trn won if chip production disruptions force Samsung to scrap wafers already in production.

The company accounts for 22.8pc of South Korea’s exports and revenue equivalent to 12.5pc of GDP, according to CNBC. Kim described Monday’s talks as the last opportunity to avert the strike, warning that “the economic losses we will face will be beyond imagination”.

Pressure on the unions mounted further today when the Suwon District Court partially granted Samsung’s injunction request against two unions, ordering that staffing levels required for safety, facility protection and product quality must remain at normal levels during any industrial action.

The Financial Times cited corporate lawyer Hyeseop Sim, who said the ruling “will significantly weaken the scope of the strike and the negotiating power of the unions”, adding that chip production was therefore unlikely to be significantly disrupted.

Samsung chip division executives have also warned that key customers including Nvidia indicated they might temporarily halt shipments during a strike over product quality concerns, according to Reuters. President Lee Jae-myung called for balance on Monday, posting on X that “labour must be respected as much as corporations, and corporate management rights must be respected as much as labour rights”.

“Workers must be able to receive fair compensation for the labour they provide, and shareholders who have invested while bearing risks and losses have a share in corporate profits,” he continued.

Samsung chairperson Lee Jae-yong issued a rare public apology to customers worldwide on Saturday for causing “concern and anxiety”, according to local Korean media.

All eyes will be on the talks that are reportedly due to finish tomorrow, as the industry fears yet another hit to the global chip supply chain.

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