Samsung’s Mobile AI event overshadowed by worker strikes

Right before the Unpacked event, Samsung announced that it was looking at a staggering profit increase of 1,400% in Q2 2024 compared to the same period in the last fiscal year. Its regulatory filing revealed that profits would rise to 10.4 trillion won – equivalent to $7.54 billion – from earnings of 670 billion won posted last year.

Sales will also likely see a 23.3% bump to 74 trillion won, with another batch of smartphones and tech wearables scheduled for release in the coming months.

However, this remarkable increase is unrelated to the latest shiny devices showcased in Paris at Unpacked 2024. The growth is primarily driven by the AI gold rush, which has significantly increased demand for advanced chips.

The company’s success is further bolstered by its strong position in high-capacity SSDs, crucial for AI applications. According to TrendForce analyst Avril Wu, “The development of AI has driven the demand for high-capacity SSD.”

Inexorably changing the fate of the semiconductor segment, South Korea’s chip exports surged to the highest in two years, at $11.7 billion in March 2024.

Looking behind the curtain of the Samsung Unpacked Event in Paris, the contrast between Samsung Electronics’ soaring profits and its labor unrest is quite literally striking. Although it had predicted an astounding 1,400% growth in Q2 profits, thousands of Samsung workers walked off the assembly lines demanding better working conditions.

The three-day strike of the National Samsung Electronics Union, representing about a quarter of the South Korean workforce, was called to demand better pay, more leave, and an overhaul of bonuses. The contrast shows how this tension between corporate success and employee satisfaction is increasing in the tech industry.

Despite Samsung estimating a dramatic surge in second-quarter operating profit, union officials argue that rank-and-file workers are not seeing equitable benefits. While unlikely to significantly impact production due to automation and low participation, the strike symbolizes a pivotal moment for Samsung as it navigates both the opportunities of the AI era and the evolving expectations of its workforce.

Workers at Samsung Electronics workers began a three-day strike for better pay. The union said 6,540 workers will be striking at manufacturing sites and in product development, but the firm maintained there was no disruption in production.

Article Source: Samsung’s Mobile AI event overshadowed by worker strikes despite a 1,400% profit jump | Cybernews