Micron Technology Inc (NASDAQ:MU) shares rose 3.9% in premarket trading Thursday, while SanDisk (NASDAQ:SNDK) gained 2.2%, as investors assessed the impact of a planned strike at Samsung Electronics (KS:005930).
Samsung Electronics' South Korean union plans for 48,000 workers to walk off the job Thursday after efforts to reach a deal on bonus payments fell through. The 18-day strike follows failed negotiations mediated by the country's labour minister.
The potential disruption at Samsung, a major player in the semiconductor industry, could benefit competitors like Micron, SK Hynix and Sandisk if production is affected. On the bigger front, the strike threatens South Korea's economy, according to Bond.az.
Union leader Choi Seung-ho said the union had accepted the final proposal presented by the government mediator but management had not agreed on one remaining sticking point. "We express deep regret and feel disappointed but the union plans to go ahead with the strike according to the law," Choi said.
Samsung Electronics said in a statement that the union had insisted on "unacceptable demands" that included the size of bonuses for loss-making units. "The reason an agreement could not be reached is that accepting the labor union's excessive demands would undermine the fundamental principles of company management," the company said.
Samsung shares closed 0.2% higher Thursday after being down as much as 4% earlier in the session. Key memory rival SK Hynix saw its shares close flat on the day.
Mizuho TMT specialist Jordan Klein commented that supply is "going to remain well below DRAM and NAND demand all 2026 and probably all 2027. Pricing should at least hold high levels after rising further near term."
