The strike at Samsung factories has not yet begun, but memory is already becoming more expensive

A massive strike at Samsung’s semiconductor plants in South Korea, scheduled to begin on May 21, could trigger the biggest DRAM memory crisis in years. The situation surrounding Samsung’s key semiconductor complex in Pyeongtaek has already entered emergency management mode, threatening not only global DRAM supply chains but also the budgets of millions of consumers planning to buy new electronics.

The timeline of the conflict: why the strike is happening

The large-scale strike organized by Samsung’s biggest labor union is expected to last 18 days. The official start date — which could effectively halt parts of production — is set for May 21. The conflict escalated after negotiations over employee bonuses collapsed, with workers rejecting Samsung’s latest proposal over dissatisfaction with the company’s compensation structure.

At the center of the dispute is Samsung’s bonus system. Employees are demanding the removal of the current 50% cap on incentive payments and want bonuses tied directly to company profits — similar to the model previously negotiated by workers at SK hynix. Samsung management considers these demands unacceptable and appears willing to risk production shutdowns rather than revise its compensation policy.

The crisis has been building for months. Analysts estimate the potential financial damage from halted production at 10–20 trillion won, while some experts warn total losses could climb as high as 100 trillion won once factory restart costs and supply chain disruptions are taken into account. South Korean authorities have already received requests from business groups urging government intervention and the use of emergency arbitration measures to temporarily freeze the strike.

How the market has already reacted

Samsung remains the world’s largest DRAM manufacturer, and fluctuations in memory pricing directly impact the cost of smartphones, tablets and PCs. DRAM prices started climbing even before news of the strike emerged. Earlier this year, 12 GB memory modules sold for around $33, while the same modules are now approaching $70.

This near doubling in price happened even before production cuts became a realistic scenario. Samsung’s semiconductor division has reportedly refused to sign long-term DRAM supply agreements — even with Samsung’s own Galaxy smartphone division. As a result, Samsung Mobile is now forced to buy memory on shorter quarterly contracts at constantly increasing market prices.

Why prices may continue to rise

According to South Korean reports, Samsung management has already shifted its massive Pyeongtaek semiconductor complex into a restricted operating mode. Engineers are urgently removing semiconductor wafers from production lines, with roughly 15,000 containers — equivalent to around 360,000 wafers — being pulled from factories.

DRAM components are produced inside ultra-clean sterile facilities that operate 24/7. A sudden 18-day shutdown beginning on May 21 could leave huge amounts of unfinished material unusable, turning expensive semiconductor wafers into scrap.

Samsung’s actions suggest the company is preparing for the worst-case scenario and no longer expects a compromise before the strike officially begins.

The delay of roughly 360,000 wafers originally intended for future supply contracts has already fueled concerns about memory shortages and another wave of electronics price increases.

Which brands are most at risk

The shortage threat affects nearly every major Android manufacturer. Companies such as Google, Motorola, OnePlus and Xiaomi — all of which rely heavily on Samsung memory chips — could face serious supply pressure if the strike continues.

Apple is in a somewhat safer position because the company sources much of its memory from Samsung rivals SK hynix and Micron. Even so, a prolonged DRAM crisis would likely affect the entire electronics industry regardless of supplier diversification.

Impact on the retail market

A global memory shortage would place additional stress on supply chains that are already dealing with complicated logistics and higher transportation costs. As wholesale prices rise across international distribution hubs, retailers and distributors will inevitably pass those increases on to consumers.

What buyers should expect

Manufacturers may begin cutting costs by reducing memory configurations in upcoming smartphones. In practice, this means consumers could start seeing devices with less RAM sold at the same — or even higher — prices.

Flagship phones with 12 GB of RAM or more could quickly become expensive premium-tier products rather than mainstream options.

Should you buy a smartphone now?

Buying decisions should now factor in the possibility of future shortages and additional price hikes. Retail prices have not yet fully reflected the spike in DRAM costs, which means current pricing conditions may not last much longer.

Reasons to buy now:

• You can protect yourself from future price increases caused by prolonged factory shutdowns.
• You may avoid inflated launch pricing for future devices such as the Galaxy S26 lineup, which was already expected to cost more than previous models.
• Devices with 12 GB of RAM are still widely available today but could become far more expensive or harder to find later.

Reasons some buyers may still wait:

• Historically, electronics prices rarely return to previous levels after supply chain disruptions.
• Projected industry losses of up to 100 trillion won could reduce product availability and limit consumer choice.
• The standoff between Samsung management and labor unions is unlikely to be resolved quickly.

If you were planning to upgrade your smartphone within the next year — especially in 2026 — many analysts now believe buying sooner rather than later may be the safer option. The full consequences of the May 21 strike will become clearer in the coming weeks, but consumers will almost certainly end up paying part of the bill for this semiconductor crisis.