Samsung has begun shutting down chip production lines in preparation for an 18-day worker strike involving over 43,000 factory employees. The company has entered emergency management mode, restricting new wafer introductions into the production process. Despite automation allowing minimum operations, production lines face stalling as human involvement remains essential for maintaining 24/7 manufacturing cycles.

This strike threatens to disrupt 3-4% of global DRAM supply and 3% of NAND Flash production at a time when shortages are already severe. The affected production lines target HBM, (LP)DDR5, and custom logic chips critical for next-generation computing. Customers may shift to competitors like SK hynix or Micron if they perceive uncertainty in Samsung's production capacity.

With the strike beginning May 21 and full operations taking 2-3 weeks to restore after, approximately six weeks of high-volume manufacturing face disruption. Industry analysts estimate the total loss from both direct revenue to Samsung and its customers could reach $67 billion in a worst-case scenario, potentially exacerbating global supply chain challenges that have persisted throughout the semiconductor industry.