Semiconductor production at Samsung Electronics (005930) fell 18% during the one-day rally held by its labor union on Wednesday, according to the union. The joint struggle headquarters disclosed the production decline directly, pressuring management by threatening an 18-day general strike next month that would deal a critical blow to output unless the company accepts a proposal to distribute 15% of operating profit.
On Thursday, the union said that the previous day's rally, attended by some 40,000 members, caused memory fab production to drop 18.4% during the night shift. Output declines by memory line were -33.1% at Hwaseong Line 15, -11.3% at Line 16, and -13.1% at Line 17, while at Pyeongtaek the figures were -23.1% at P1D, -10.0% at P1F, -24.6% at P2D, -3.2% at P2F, and -11.0% at P3D.
Output at the foundry (contract chipmaking) fabs plunged 58.1%. By line, S1 (Giheung) fell 74.3%, S3 (Hwaseong) 67.8%, and S5 (Pyeongtaek) 42.7%. Foundry lines are less automated than memory lines — with fewer systems such as Overhead Hoist Transport (OHT) for wafer transfers — making them more dependent on manual labor. As a result, production losses were greater than at memory sites.
The union had earlier projected that production losses during a general strike could exceed 30 trillion won. It then disclosed the decline in fab utilization caused by Wednesday's rally, attended by about 40,000 people. The move ratchets up pressure on management, signaling that the union will cripple production through a general strike unless its demands are met.
The union is demanding performance-based pay equivalent to 15% of operating profit and the abolition of the cap on bonuses. Samsung Electronics' operating profit is forecast at roughly 300 trillion won this year. Under the union's demands, about 45 trillion won would need to be paid out as bonuses.
If management refuses, the union plans to stage an 18-day general strike from May 21 to June 7. It has signaled it will maximize damage to production by mobilizing even personnel who operate "safety protection facilities" that prevent chemical leaks.
Separately, Choi Seung-ho, head of the Samsung Electronics chapter of the Super-Corporate Union, said he had filed notice with the Yongsan Police Station in Seoul to hold a rally in front of Chairman Lee Jae-yong's residence on May 21, the day the general strike begins.
Samsung Electronics earned a record 57 trillion won — and now a strike? "I'd rather go to Hynix."
