Samsung’s chip output cut feared to disrupt global supply chains

Samsung Electronics’ move to cut its chip output is fueling concerns over major disruptions to global customer deliveries, after the chipmaker failed to reach a wage agreement with its unions, industry officials said Friday. More than 43,000 unionized workers — mostly from the firm's Device Solutions Division, which oversees the company’s semiconductor business — are set to begin an 18-day strike on Thursday following the latest deadlock in negotiations. They are demanding fixed performance bonuses equivalent to 15 percent of the operating profit generated by the company’s semiconductor division, along with the removal of the payout cap. The output reduction is expected to strain the global semiconductor supply chain at a critical time when demand for memory chips — particularly high-bandwidth memory — far exceeds supply in the era of artificial intelligence (AI). Samsung is a major supplier of memory chips to global tech giants, such as Nvidia, Apple, AMD, Google and Meta. Semiconductor manufacturers typically reduce their production in response to weakening market demand,

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