The first StrictlyVC of 2026 hits SF on April 30. Tickets are going fast. Register now.
Save up to $680 on your Disrupt 2026 pass. Ends 11:59 p.m. PT tonight. REGISTER NOW .
TechCrunch Desktop Logo TechCrunch Mobile Logo Latest Startups Venture Apple Security AI Apps Events Podcasts Newsletters Search Submit Site Search Toggle Mega Menu Toggle Topics Latest
Labor unrest at Samsung may worsen memory chip supply issues Kate Park 6:59 AM PDT · April 23, 2026 Tens of thousands of Samsung Electronics workers held a rally at the company’s Pyeongtaek campus in South Korea on Thursday to signal they are prepared to walk off the job for an 18-day strike next month. The dispute, at its core, is over money.
The workers’ union wants Samsung to scrap its performance bonus cap and redirect 15% of its operating profit directly to its workers. Samsung has not agreed, and talks have stalled. Meanwhile, the electronics giant is fighting the union both in court and at the negotiating table.
Rival chipmaker SK Hynix is reportedly expected to pay average bonuses of roughly $400,000 per person to its 35,000 employees early next year. Samsung has offered employees in its memory chip division compensation exceeding that of its rivals — an offer the union has so far rejected, according to local media reports .
A Samsung spokesperson did not respond to a request for comment ahead of publication. Samsung has long been South Korea’s most coveted employer. The bonus gap with SK Hynix is putting pressure on that advantage.
Not everyone at the rally was on the union’s side. Shareholders also gathered directly across the street, accusing workers of undermining the company at a crucial juncture.
The timing is bad for Samsung. The AI boom is creating a chip shortage , with the world’s top three memory chip manufacturers, Samsung, SK Hynix, and Micron racing to meet demand from AI data centers. The companies have redirected resources away from their consumer businesses to make high-bandwidth memory chips for AI uses, as they command far higher margins.
AI data centers now consume an estimated 70% of high-end memory chips produced worldwide, leaving consumers to fight over what’s left. The prices of conventional memory chips, like DRAM, have skyrocketed since early 2025.
Techcrunch event Meet your next investor or portfolio startup at Disrupt Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $410. Meet your next investor or portfolio startup at Disrupt Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $410. San Francisco, CA | October 13-15, 2026 REGISTER NOW If Samsung Electronics’ more than 35,000 workers go on strike next month, the ripples would be felt all the way in Silicon Valley, as it may compound the ongoing memory chip shortage.
When you purchase through links in our articles, we may earn a small commission . This doesn’t affect our editorial independence.
Kate Park is a reporter at TechCrunch, with a focus on technology, startups and venture capital in Asia. She previously was a financial journalist at Mergermarket covering M&A, private equity and venture capital.
April 30 San Francisco, CA StrictlyVC kicks off the year in SF. Get in the room for unfiltered fireside chats with industry leaders, insider VC insights, and high-value connections that actually move the needle. Tickets are limited.
Most Popular Duolingo is now giving users access to advanced learning content Lauren Forristal
___________________________________________________________________________________________________________
-- --
PLEASE LIKE IF YOU FOUND THIS HELPFUL TO SUPPORT OUR FORUM.
