A warning has emerged that if a strike by Samsung Electronics' (005930.KS) labor union materializes, the global semiconductor supply chain will be damaged and the company's market-leading position will be shaken, resulting in irreparable harm. Song Heon-jae, a professor of economics at the University of Seoul, predicted at a recent seminar that "if factory operations are halted, the resulting losses could reach up to 1 trillion won per day, and a prolonged strike could reduce the semiconductor division's operating profit by up to 10 trillion won." In particular, Professor Song pointed to "invisible costs" such as weakened customer trust, loss of business partners, and supply chain realignment as greater risk factors, beyond financial losses in the tens of trillions of won. Given the nature of the semiconductor industry, where customers who leave rarely return, Samsung Electronics could suffer a fatal and structural blow.
Forecasts suggest that if Samsung Electronics launches a general strike next month, participation could reach 30,000 to 40,000 workers. Preventing production disruptions through replacement workers would be nearly impossible. This cannot but raise concerns, given that global Big Tech companies apply very strict standards for supply stability in business-to-business transactions, including product purchases and investments. Should global Big Tech firms begin reviewing alternative supply sources, the possibility that Samsung Electronics could permanently lose market share cannot be ruled out. Indeed, Taiwanese media have reported that if production disruptions occur at Samsung Electronics, Taiwanese semiconductor companies such as TSMC could reap windfall benefits.
The achievements of Korea's semiconductor companies are the result not only of workers' efforts, but also of companies' continuous investments, shareholders' interest, and national efforts such as infrastructure including electricity and water as well as tax and legislative support. Appropriate compensation for performance is necessary, but unreasonable demands that erode competitiveness must be avoided. The current semiconductor super-cycle is a critical period in which winners and losers could be permanently divided depending on how one responds. While competitors wage an all-out battle for semiconductor hegemony, if Korea alone wastes time on labor-management conflict, it could lose its technological lead and be overtaken by late entrants. This could boomerang not only on the future competitiveness of companies and the nation, but also on workers themselves. We hope that Samsung Electronics' union will reconcile differences through rational dialogue with management and listen to the views of the market and shareholders to avoid mutual destruction.
