Rumor

Samsung foundry strike risk threatens PMIC and DDIC supply chain stability

Sunday, March 15, 2026 at 05:44 PM

Samsung faces a potential strike at its foundry facilities as early as May 21, which could disrupt the supply of PMICs and DDICs through Q3. Analysts note that mature process nodes are already constrained due to rising AI server power demands and capacity optimization at TSMC and Samsung. Suppliers like Silicon Power and Lizhi are reportedly accelerating transitions to 12-inch wafers and securing early foundry capacity to mitigate shortages in power management and driver ICs.

Context

Labor tensions at Samsung Electronics have reached a critical tipping point as the National Samsung Electronics Union (NSEU), representing roughly 90,000 workers, recently voted 93% in favor of a general strike. Negotiations stalled over demands for a 7% wage increase and more transparent performance bonuses following record profits in the memory division. Market analysts warn that a walkout, potentially starting as early as May 21, 2024, could severely disrupt the production of Display Driver ICs (DDIC) and Power Management ICs (PMIC) at Samsung’s mature-process fabs, with supply constraints likely persisting into Q3 2026. This labor risk coincides with a broader tightening of the global semiconductor supply chain. TSMC is currently phasing out its 6-inch wafer production and optimizing 8-inch capacity, while high-power AI server demand is causing a surge in PMIC and MOSFET consumption. If Samsung’s output is throttled, the industry faces an immediate supply-demand imbalance and price hikes. Consequently, firms like Silicon Power and Lizhi are reportedly accelerating their shift to 12-inch manufacturing and securing early capacity with alternative foundry partners to mitigate potential delivery delays.

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