Key insights
- A South Korean court has partially blocked a Samsung union strike, ordering it not to disrupt chip production volume or degrade materials. While the strike is still planned, the court's intervention mitigates potential negative impacts on Samsung's output and the global memory chip supply. This reduces the risk of upward pressure on memory chip prices, a slight negative for US-listed companies that benefit from higher prices.
SEOUL - A South Korean court granted on May 18 a partial injunction requested by Samsung Electronics ordering the company’s union in the country to ensure its strike does not cut into production volume, a court spokesperson said.
The court also said in the ruling that union action must not lead to the degradation of materials used in the world’s largest memory chip maker’s production, the spokesperson said by telephone.
The union has threatened to go on strike on May 21 demanding greater profit sharing. REUTERS