Knews Desk– The world’s leading tech company Samsung Electronics is facing a major labor dispute these days. About 45 thousand employees of the company are preparing to strike, which is expected to have a major impact on the global AI chip supply chain. According to reports, this could be the biggest employee strike in Samsung’s history.
Controversy increased regarding bonus and salary
According to the information, the employees of Samsung’s memory chip division were given huge bonuses, while the employees of logic chip and foundry units were getting less benefits, increasing their resentment. The union alleges that the company is earning huge profits from the AI boom, but its benefits are not being given equally to all the employees.
The union has demanded that the company put 15 percent of its annual operating profit into the bonus pool and the 50 percent limit on bonus should be removed. However, Samsung management has refused to accept this demand.
AI industry may be affected
Experts believe that if the strike continues for a long time, the AI sector may suffer a major setback. Samsung is one of the world’s largest memory chip companies and its chips are used in AI data centers, smartphones, laptops and high-performance computing.
According to reports, the proposed 18-day strike could cause a loss of billions of dollars to the company. JPMorgan has estimated that this could impact Samsung’s profits by up to $20 billion.
The government also became worried
The South Korean government has also taken this controversy seriously. The government fears that if chip production is affected, the country’s economy and exports may be affected. Samsung plays a vital role in South Korea’s economy and contributes significantly to the country’s total exports.
Talks continue, but crisis persists
Although talks are ongoing between the company and the union, no final agreement has been reached yet. The court has ordered some essential workers to continue production, so that factories and supply chains are not completely affected.
Meanwhile, tech companies around the world are also keeping an eye on the situation, because stoppage of Samsung’s chip supply can create a big crisis in the AI and electronics industry.
Comments are closed.