Academia: "The Bigger Problem with Samsung Electronics' Strike Is the Damage to Supply Chain Trust"

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\r\n[Financial News] As Samsung Electronics Co., Ltd.'s labor union has warned of a strike next month, academics have raised concerns that the move could go beyond simple production disruptions and lead to damage to supply chain trust and a weakening of industrial competitiveness.
According to the industry on the 26th, Song Heon-jae, a professor in the Department of Economics at the University of Seoul, presented this outlook at a recent seminar hosted by the Anmin Policy Forum, where he spoke on the ripple effects of a strike by Samsung Electronics Co., Ltd.'s labor union.
Song estimated that if the strike becomes a reality, losses from factory shutdowns could reach tens of billions of won per minute, or about 1 trillion won a day. He also suggested that if the strike drags on, operating profit in the semiconductor division could fall by as much as 10 trillion won.
He identified the impact on supply chains as the key risk. Song warned that "global big tech customers may begin reviewing alternative suppliers such as TSMC to diversify risk," and added that "in the semiconductor industry, where process validation takes enormous time and cost, customers who leave once are difficult to win back."
He also said that because major clients such as AMD and Nvidia place great importance on supply stability, production disruptions are highly likely to translate directly into weakened trust.
Song emphasized that the "invisible costs" could be more damaging than short-term revenue losses. He pointed to the erosion of trust assets, loss of market share due to higher switching costs, greater opportunity costs in the competition for AI semiconductors, the outflow of key talent, and a deepening Korea discount as major risks.
He said, "Semiconductor technology loses competitiveness if it falls behind by just one or two years," and added, "While Nvidia, TSMC, and Intel are locked in a life-or-death race for AI semiconductor dominance, diverting resources to resolve internal conflict itself creates enormous opportunity costs."  
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scottchoi15@fnnews.com Choi Eun-sol Reporter