Hello, I'm Pazz.
Negotiations just fell through, and it's said a strike will begin starting tomorrow.
We will mobilize emergency personnel to the maximum extent, but if the strike is prolonged, production disruptions seem unavoidable.
Samsung is the world's largest memory manufacturer, and if the strike is prolonged, it will likely worsen the already tight memory supply situation. In this case, memory prices will rise, and as a result, operating profits of memory companies will increase.
There may be a short-term shock to stock prices, but it will show positive effects.. ㅎㅎ
It wasn't a strike, but something similar happened in 2013. It was the SK Hynix factory fire in Wuxi, China. The DRAM line in Wuxi caught fire and was half destroyed. As a result, almost 5% of the global DRAM capacity was shut down for several months. What happened at that time... DRAM prices immediately rose 30%, and Samsung Electronics' stock and SK Hynix's stock, whose factory worth trillions of won burned down, both surged together...
If the strike is brief it's unclear, but if it prolongs, the key point is that it could be a positive factor for the stock market and corporate earnings.
