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Samsung Strike Fallout Spreads to Materials Suppliers; Chip Association Warns of Supply Chain Domino

May 25, 2026 -

Union Rejects Management's Bonus Proposal, General Strike Looms KSIA Voices Concern Over Negative Impact on Entire Semiconductor Ecosystem "SMEs Must Not Miss Market Expansion Opportunities in the AI Era"

By Lee Suk-jin, Seoul Economic Daily

 

The Korea Semiconductor Industry Association (KSIA) has publicly expressed concern as labor-management conflict at Samsung Electronics (005930.KS) shows signs of becoming prolonged. The association warned that if the planned 18-day general strike at Samsung Electronics, scheduled to begin on the 21st of this month, materializes, it could trigger a chain shock across Korea's semiconductor supply chain.

In a statement released Wednesday, the Korea Semiconductor Industry Association said, "We are deeply concerned about the impact of the current labor-management conflict at Samsung Electronics on the competitiveness of a key national industry and the stability of the supply chain," adding that "labor and management must find a solution through amicable dialogue and compromise."

The association pointed out that potential production disruptions at Samsung Electronics, the country's largest semiconductor company, could spread throughout the materials, parts, and equipment industry. The statement reflects industry concerns that any instability in Samsung Electronics' production line operating rates could have a cascading effect on suppliers of wafers, gases, chemicals, and components.

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