Stocks of chip and electronic part manufacturers in South Korea’s KOSPI exchange recorded gains on Thursday, with the country’s leading chip producer facing challenges in meeting escalating demand.
SK Hynix Inc. witnessed a 3.35% increase in its share price during the morning session, while Leeno Industrial Inc. saw a 2.48% rise, HPSP Co Ltd surged by 11.56%, and Samsung experienced a slight uptick of 0.34%.
Samsung Electronics, the largest union representing over 30,000 workers, initiated an indefinite strike demanding higher wages, disrupting the production of 8-inch semiconductors.
The National Samsung Electronics Union (NSEU), comprising about a quarter of the company’s South Korean workforce, announced the extension of the strike that commenced on Monday due to management’s reluctance to engage in discussions. The union’s primary focus is on advocating for improved remuneration and perks.
Despite 6,500 employees participating in the strike, union officials are urging more members to join the protest, intensifying pressure on the tech behemoth for better working conditions. This development compounds challenges for the world’s leading memory chipmaker as it grapples with stiff competition in the semiconductor sector catering to artificial intelligence (AI) applications.
Meanwhile, Samsung has reassured that its operations remain unaffected and emphasizes its commitment to dialogue and negotiations with the union.
