Samsung Electronics saw a sharp drop in chip production after unionised workers staged a rally demanding better compensation, according to the company’s labour union.

The disruption hit overnight operations on Thursday at the tech giant’s semiconductor facilities in South Korea—one of the world’s most critical hubs for memory and foundry chip manufacturing, News.Az reports, citing Reuters.

According to union figures, output from Samsung’s foundry business plunged by 58%, while memory chip production fell by 18% during the overnight shift.

The slowdown coincided with a large worker rally held outside the company’s semiconductor plant in Pyeongtaek, where employees gathered to protest pay levels and signal the possibility of further industrial action.

The protest marks an escalation in tensions between Samsung and its workforce, as union members push for higher wages and improved compensation structures.

The rally also comes ahead of a potential extended strike, raising concerns about longer-term disruptions in the global chip supply chain if negotiations fail.

Samsung Electronics has not commented on the reported production decline or the union’s claims.

Samsung is one of the world’s largest semiconductor producers, supplying critical components used in everything from smartphones to data centers.

Any disruption—even temporary—can ripple across global technology markets, especially at a time when demand for advanced chips remains high.

News.Az 

By Aysel Mammadzada