Samsung Strike Threat Drives DDR Memory Prices Higher
Threat of Samsung Strike Pushes Up Memory Prices (Again)
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As a potential strike looms at Samsung Electronics, DDR4 memory prices in China have surged by 20% in a week, with DDR5 prices also rising. Workers are demanding a share of the company's $38 billion operating profit, while Samsung risks losing $20 billion if the strike occurs.
- 01DDR4 memory prices in China increased by 20% due to a potential strike at Samsung Electronics.
- 02The price of a 64GB DDR5 RDIMM module rose to $1,350, an 11% increase month over month.
- 03Workers are demanding 15% of Samsung's operating profit as bonuses amid rising competition from SK Hynix.
- 04Samsung's operating profit for Q1 2026 was approximately $38 billion, with potential losses of $20 billion if the strike proceeds.
- 05The last significant strike at Samsung lasted 25 days in 2024, ending due to financial constraints on workers.
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Ahead of a potential 18-day strike starting May 21, spot prices for DDR4 memory in China have surged by 20% in the past week, reflecting concerns over supply disruptions. The price for a 64GB DDR5 RDIMM module has reached $1,350, marking an 11% increase month over month. Workers at Samsung Electronics are demanding 15% of the company's substantial operating profit, estimated at $38 billion for the first quarter of 2026. They rejected a bonus offer of $340,000 per employee, especially in light of rival SK Hynix's bonuses, which can reach up to $900,000 by 2027. If the strike occurs, Samsung could face losses of around $20 billion. The last major strike in 2024 lasted 25 days, ending when employees could no longer afford to strike without pay.
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The potential strike at Samsung could lead to significant disruptions in the memory market, affecting prices and availability for consumers and businesses reliant on these components.
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