samsung semiconductor campus chip factory

General

Update: South Korean truckers have reportedly ended the strike, as the union and the transport ministry reached a tentative agreement on minimum pay guarantees. (via Reuters).

Original story follows

Well, it seems like not everything is going well for Samsung at the moment. According to Reuters, Samsung chip production in China is facing huge interruptions because of an ongoing trucker strike in South Korea. This is blocking the free movement and export of key raw materials for manufacturing, said the Korea International Trade Association (KITA).

Worse is that this strike could continue for a week, ultimately causing a huge impact on Samsung chip production in China. The loss is estimated to be worth more than $1.2 billion in the particular industrial sector.

Notably, because of this truck strike, the Korean company that produces isopropyl alcohol (IPA), mainly used for cleaning chip wafers, is facing complications in shipping to a Chinese company. This is further creating a hurdle for the Chinese company to supply wafers to a Samsung Electronics factory in Xian, China for manufacturing.

Samsung's Xian plant has already seen a production disruption earlier this year because of COVID. Another disruption in chip manufacturing could be pretty challenging for the newly appointed president, Yoon Suk-Yeol.

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Sagar Naresh

General China South Korea

Trucker strike in South Korea halts Samsung chip production in China

Sagar Naresh

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