A worker pulls a cart with packages as he walks past Huaqiangbei electronics market in Shenzhen, southern China, on Oct. 30, 2025. The Shenzhen market is a major distribution hub that is viewed as a bellwether for global memory market conditions. [REUTERS/YONHAP]
A looming strike at Samsung Electronics is opening a window for Chinese chipmakers to gain market share, as fears of supply disruptions at the world's largest chipmaker have already led to a spike in prices for some dynamic random-access memory (DRAM) chips.
Asking prices for Double Data Rate 4 (DDR4) 8-gigabit DRAM chips used in personal computers surged about 20 percent this week at Huaqiangbei electronics market in Shenzhen, southern China, according to Taiwan’s Economic Daily News on Thursday.
The Shenzhen market is a major distribution hub that is viewed as a bellwether for global memory market conditions.
The Taiwanese outlet noted that concerns over a possible Samsung Electronics strike had heightened market anxiety at a time when memory supplies were already tight due to growing demand for AI server chips.
Industry observers say Chinese and Taiwanese rivals will likely exploit disruptions resulting from a strike at Samsung Electronics.
“Nanya Technology in Taiwan and China’s ChangXin Memory Technologies will likely try to capitalize on any gap,” said Jeong Hyung-gon, a senior research fellow at the Korea Institute for International Economic Policy. “What is most concerning is that, amid intensifying competition for dominance in AI semiconductors, once customers leave, it becomes difficult to win them back."
A computer motherboard with a chip is placed at a booth for electronic product repair at Huaqiangbei electronics market in Shenzhen, southern China, on Oct. 29, 2025. [REUTERS/YONHAP]
Two Samsung Electronics unions are demanding that the company scrap the current cap on performance-based bonuses, which is set at 50 percent of annual salary. They are also demanding that 15 percent of the company’s annual operating profit from its chipmaking division be distributed to workers.
Samsung Electronics management, however, argues that the cyclic nature of the semiconductor industry requires flexibility in compensation to withstand downturns and sustain future investments. In 2023, for example, Samsung Electronics invested 48.4 trillion won ($32.4 billion) in facilities that year despite its chipmaking division posting operating losses of roughly 15 trillion won.
The company said during an earnings call at the time that it had “tried to maintain the scale of investment needed to secure long-term competitiveness despite worsening market conditions.”
“Even during periods of losses following the end of a semiconductor supercycle, companies need to build up sufficient reserves during boom years to continue investing,” said Kim Yong-seok, head of the Semiconductor Research Institute at Gachon University. “The semiconductor industry places far greater importance on the sustainability of long-term investment than on short-term performance."
The Samsung Electronics' headquarters in Suwon, Gyeonggi [YONHAP]
According to industry sources, Samsung Electronics has begun a phased “warm-down” process since Thursday to reduce the shock of a possible production halt.
The measures reportedly include limiting the number of new wafers entering production lines and prioritizing the manufacturing of advanced products such as high bandwidth memory chips.
Industry observers warn that losses could reach as high as 100 trillion won in a worst-case scenario involving a full production stoppage at Samsung Electronics. That figure includes damage to 1,754 suppliers of semiconductor materials, parts and equipment, as well as losses stemming from disruptions to global supply chains.
“It could take more than a month just to prepare production lines before a strike and stabilize them afterward,” said Kim Dong-won, head of research at KB Securities.
Six major business lobby groups are reportedly considering a joint statement urging unions to withdraw the strike and calling on the government to invoke emergency arbitration powers to prevent the strike.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
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