Impact of Samsung’s 18-Day Strike on DRAM and NAND Production: Output May Decrease by 4%, Recovery Estimated at 2-3 Weeks

As the global semiconductor market braces for significant upheaval, Samsung Electronics faces an imminent DRAM and NAND shortage due to a planned 18-day strike by its union workers. This labor action is expected to exacerbate pre-existing supply chain constraints, posing risks to manufacturers and consumers alike.

Impact of Samsung Strike on DRAM and NAND Production

Reports indicate that the Samsung union is demanding bonuses amounting to 15% of the company’s annual operating profit, approximately $30 billion. Should negotiations fail, a strike is slated to run from May 21 to June 7, during which production disruptions are projected to reach up to 4% for DRAM and 3% for NAND memory solutions.

It is projected that if the Samsung Electronics (005930) labor union proceeds with an 18-day general strike as announced, the supply of memory semiconductors will decrease by up to 4%.This is because it will take about 2 to 3 weeks to normalize production even after the general strike.

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Estimates suggest that if the strike proceeds, Samsung could incur losses amounting to approximately 20-30 trillion KRW ($13-20 billion USD), with the risk of a 36-day production blackout. The post-strike recovery process may take an estimated 2 to 3 weeks, involving necessary procedures such as cleanroom resets, tool recalibration, and yield ramp-up.

A presentation slide titled '18-Day Strike in Focus: DRAM & NAND Output at Risk' details the impact on Samsung's output, highlighting a 30-40K participant strike likely causing 3-4% DRAM and 2-3% NAND reductions from May 21 to June 7, 2026, with a post-strike recovery of 2-3 weeks. — Image Source: Trendforce

According to Trendforce, the anticipated recovery period underscores a deepening crisis for the AI sector, which is already grappling with severe DRAM and NAND supply issues. While semiconductor companies, including Samsung, are racing to ramp up production at both existing and new sites, they will likely only satisfy about 70% of current demand.

Though a disruption of 2-4% may seem minimal on the surface, the ramifications in today’s precarious market landscape cannot be underestimated. Even a mere 1% disruption could trigger substantial supply chain delays. For consumers and manufacturers alike, this strike stands to exacerbate already rising prices for critical components, further complicating an already challenging economic landscape.

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