Samsung is taking preemptive steps to throttle semiconductor production ahead of a major union strike by halting new wafer starts and idling key equipment such as lithography, etching, and cleaning tools.
An 18-day walkout by over 43,000 workers, more than half of the semiconductor division, is scheduled to begin on May 21, after negotiations over employee bonuses collapsed.
The company has shifted to emergency management mode and is bracing for potential daily losses of up to $2 billion from the disruption of 24/7 chip fabrication operations.