Foreign Media Say Fears of Disruption to Chip Supply Chain Ease After Samsung Labor Deal

Major international news outlets said concerns over disruption to the global semiconductor supply chain had eased after Samsung Electronics and its union reached a tentative agreement on wages and performance bonuses.

Bloomberg reported that if the union had gone ahead with its planned 18-day strike, it could have disrupted production and added a significant burden to Samsung’s efforts to accelerate development of next-generation chips. The agreement eased concerns over supplies of key semiconductors used in products ranging from data-center servers to smartphones and electric vehicles. Reuters said production disruptions, at a time when the artificial-intelligence boom is already causing supply shortages, could have fueled a rise in global chip prices.

Some analysts also said that even if the union had pressed ahead with a strike, the impact on production would likely have been limited.

Business groups in South Korea welcomed the agreement the same day. The Federation of Korean Industries said the deal was meaningful because it would minimize disruption at industrial sites and help safeguard a pillar of the economy, given the semiconductor industry’s weight in South Korea. The Korea Chamber of Commerce and Industry said the outcome reflected labor and management keeping talks alive until the end, along with active government mediation.

Kim Chae-yeon, Korea Economic Daily reporter, why29@hankyung.com