A major union representing tens of thousands of people at South Korean tech giant Samsung Electronics said Wednesday that workers will go on strike for the first time ever, potentially threatening key global semiconductor supply chains.
"We can't stand persecution against labour unions anymore. We are declaring a strike in the face of the company's neglect of labourers," the union said at a live-streamed press conference.
"We have tried to solve the issue through dialogue," said the union, which reportedly represents about 20 percent of the company's workforce, around 28,000 people.
"Responsibility for all collective action from now lies squarely on the company. We are declaring our stance in the face of the company's neglect and interference in our peaceful struggle so far," the National Samsung Electronics Union added.
Samsung Electronics is the flagship subsidiary of South Korean giant Samsung Group, by far the largest of the family-controlled conglomerates that dominate business in Asia's fourth-largest economy.
The firm's management has been locked in negotiations with the union since January over wages, but the two sides have failed to narrow their differences.
If the strike goes ahead, it would be the first-ever walkout by workers at the South Korean tech giant.
Samsung Electronics is one of the world's largest smartphone makers and also one of the only companies globally to produce high-end memory chips used for generative AI.
The firm is the world's biggest producer of memory chips, including versions used in top-of-the-line AI hardware from industry leaders such as Nvidia.
Semiconductors are the lifeblood of the global economy, used in everything from kitchen appliances and mobile phones to cars and weapons.
And demand for the advanced chips that power AI systems has skyrocketed thanks to the success of ChatGPT and other generative AI products.
The use of AI has exploded in recent years in a wide range of disciplines and industries, including medical care, and firms around the world are investing heavily to incorporate it into their products.
Semiconductors are South Korea's leading export and hit $11.7 billion in March, their highest level in almost two years, accounting for a fifth of South Korea's total exports, according to figures released by the trade ministry.
South Korean chipmakers, led by Samsung, enjoyed record profits in recent years as prices for their products soared, but a global economic slowdown dealt a blow to memory chip sales.
However, the semiconductor market had been predicted to recover this year and grow 11.8 percent, according to industry monitor World Semiconductor Trade Statistics.
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