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The RAM shortage could get even worse if Samsung labor protests cut production

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Why This Matters

The potential escalation of Samsung's labor protests threatens to further exacerbate the ongoing RAM shortage, which is already impacting prices for consumer electronics and storage devices. This situation underscores how labor disputes in major tech manufacturing hubs can have widespread effects on supply chains and product costs, affecting both industry players and consumers. Addressing these issues is crucial for stabilizing memory chip supplies and preventing further price hikes in tech products.

Key Takeaways

is a news writer covering all things consumer tech. Stevie started out at Laptop Mag writing news and reviews on hardware, gaming, and AI.

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The RAM shortage caused by demand from AI datacenters is already driving up prices on phones, PS5s, and Raspberry Pis, but it could be about to get even worse. Samsung is facing employee protests over demands for wages that are more competitive with rival chip manufacturer SK Hynix, including removing Samsung’s cap on bonus pay, allocating more money for bonuses, and raising base salaries. According to AP News, an estimated 40,000 union members attended a rally on Thursday outside Samsung’s Pyeongtaek, South Korea chip manufacturing facility.

If the union and management can’t come to an agreement, the union is planning an 18-day strike beginning on May 21st. As reported by Reuters, output for Samsung’s foundry and memory chips “dropped 58 percent ​and 18 percent, respectively, during the ⁠overnight shift on Thursday as unionized workers attended a protest ​demanding higher wages.”

Samsung is currently the world’s largest DRAM and NAND memory company, with SK Hynix close behind it in both markets. The RAM shortage is already predicted to last until 2030, and is driving up prices for SSDs now, too — the 4TB version of the popular Samsung 990 Pro SSD costs nearly $1,000 now when it used to cost around $320.

According to Reuters, “over 70 percent of Samsung’s South Korean workforce” are union members, including over 90,000 employees.