Will the Samsung Worker’s Strike Impact Semiconductor Production?

Some 6,500 members of the National Samsung Electronics Union (NSEU) went on indefinite strike on July 9 following failed negotiations between the union and Samsung Electronics for higher wages and better working conditions. The NSEU, which represents 30,000 members at the electronics giant (approximately 24% of its total workforce in South Korea), says the indefinite strike is a response to Samsung’s unwillingness to negotiate.

According to Lee Hyun-Kuk, an NSEU official who spoke with Reuters, “The purpose of today’s strike action is to have meaningful conversation with management.” The NSEU has been in negotiations with Samsung regarding wages since January, with little success. The latest statement from the union makes four major demands, including a base pay increase of 3.5% for all union members and improvement of the performance bonus system at Samsung.

“Samsung Electronics remains committed to engaging in good faith negotiations with the union,” said Samsung in an official statement at the start of the strike last week. “The company is currently producing as planned, and has not incurred any problems meeting or responding to customer needs.”

But NSEU’s statement suggests otherwise: “We have confirmed that there will be a clear line production disruption, and the company will regret this decision.”

Which major suppliers could be affected by the strike?

If the strike, which is taking place in South Korea outside Samsung headquarters and its Hwaseong plant, continues on, here are ten semiconductor suppliers who could be impacted by production line delays:

1. Cavium, Inc.
2. Infineon Technologies AG
3. Lattice Semiconductor Corporation
4. NXP Semiconductors
5. Samsung Electronics Co. Ltd.
6. Samsung Semiconductor, Inc.
7. STMicroelectronics, N.V.
8. Texas Instruments Incorporated
9. Toshiba Electronic Devices & Storage Corporation
10. Xilinx, Inc. 

What commodities do these suppliers source from South Korea?

According to Z2Data’s analysis of its proprietary database of component and supplier data, these suppliers obtain the following commodities from Samsung in South Korea: 

Which sites in Samsung’s operations risk being affected by the strike?

Because the workers on strike are largely composed of members of the semiconductor production line units, the sites most likely to be affected are located in the Gyeonggi-do, Gyeongsangbuk-do, and Chungcheongnam-do provinces. These three provinces are home to a wide range of fabrication, IC assembly, assembly, shipping, and packing sites for Samsung Electronics. 

Here is a map illustrating which sites are found in which areas of the provinces:

Which production sites are tied to which commodities?

In order to effectively help manufacturers understand their risk exposure with the Samsung strikes, we’ve mapped suppliers and their commodities to each of the listed locations above. To access this report, contact us. 

Want to see your suppliers mapped?

Want to understand your company’s personal risk on a part level? Z2Data’s part-to-site mapping gives you a granular look at where your parts are produced around the world, so you have a clear view of how major events–from strikes to factory fires and more–affect your supply chain. Want to see your supply chain mapped? Contact us for a free demonstration.