Samsung labor protests could worsen the RAM shortage
▼ Summary
– A RAM shortage driven by AI datacenter demand is raising prices on devices like phones, PS5s, and SSDs, and is predicted to last until 2030.
– Samsung faces employee protests over wage demands, including higher base salaries and bonus pay, to compete with rival SK Hynix.
– Around 40,000 union members rallied at Samsung’s Pyeongtaek facility, causing output drops of 58% for foundry chips and 18% for memory chips.
– The union plans an 18-day strike starting May 21st if no agreement is reached with management.
– Over 70% of Samsung’s South Korean workforce, including more than 90,000 employees, are union members.
The RAM shortage, already intensified by soaring demand from AI data centers, is pushing up prices across consumer electronics like phones, PS5s, and Raspberry Pis. Now, it could worsen significantly. Samsung is facing growing employee protests as workers demand wages more competitive with rival chipmaker SK Hynix. Their demands include removing Samsung’s cap on bonus pay, increasing bonus allocations, and raising base salaries. According to AP News, an estimated 40,000 union members rallied on Thursday outside Samsung’s Pyeongtaek, South Korea chip manufacturing facility.
If management and the union fail to reach an agreement, the union plans to launch an 18-day strike starting May 21st. Reuters reports that output for Samsung’s foundry and memory chips “dropped 58 percent and 18 percent, respectively, during the overnight shift on Thursday as unionized workers attended a protest demanding higher wages.”
Samsung remains the world’s largest producer of DRAM and NAND memory, with SK Hynix close behind in both markets. Analysts already predict the RAM shortage will last until 2030, and prices are climbing for SSDs as well. For example, the 4TB version of the popular Samsung 990 Pro SSD now costs nearly $1,000, up from roughly $320.
According to Reuters, “over 70 percent of Samsung’s South Korean workforce” are union members, representing more than 90,000 employees.
(Source: The Verge)
