Samsung Strike Losses Estimated at 30 Trillion Won; Restarting Production Lines After Walkout Could Take 2–3 Weeks

Since Samsung's labor and management failed to reach an agreement earlier, the Samsung Electronics labor union plans to launch a general strike on the 21st of this month. The maximum number of participants is expected to exceed 50,000, accounting for 64% of the total workforce in its Device Solutions (DS) Division. The strike is likely to impact South Korea's overall economy and inflict substantial disruption on the global semiconductor supply chain.

The inherent characteristics of semiconductor manufacturing require round-the-clock uninterrupted production. Any halt in operations will force all in-process wafers to be scrapped. For a semiconductor production line operating 24 hours a day, even a single shutdown could trigger losses amounting to trillions of South Korean won.

According to estimates by the Samsung Electronics labor union, an 18-day strike could result in losses of up to 30 trillion South Korean won, including 18 trillion won in operating profit losses and 12 trillion won in costs to resume operations. By comparison, an automotive assembly line loses approximately 2.3 million US dollars per hour during downtime, while Samsung's semiconductor production lines suffer losses as high as 29 million US dollars per hour — 12.6 times that of the automotive industry.

Even after the strike ends, semiconductor lines require a lengthy period to return to normal operation. Hundreds of precision machines for nanometer-scale processes need recalibration, defective wafers must be eliminated, and production yields need to be improved. A stabilization period is essential before output meets targeted quality standards. Kim Dong-won, Head of Research at KB Securities, stated: “In the worst-case scenario, restarting automated production lines and restoring normal operations will likely take two to three weeks even after the strike concludes.”

Industry experts warn the strike may erode Samsung’s long-established customer trust. U.S. PC makers including HP and Dell have begun evaluating products from China's ChangXin Memory Technologies as alternative suppliers. This is especially critical in the foundry segment; once clients are lost, they are difficult to win back due to high redesign and logistics costs. Professor Song Heon-jae from Seoul National University noted that this could lead to permanent losses and weaken South Korea's key growth engine for its economy.