Micron Technology Inc (NASDAQ:MU) and SanDisk (NASDAQ:SNDK) saw share gains in premarket activity Thursday as investors reacted to plans for a substantial strike at Samsung Electronics (KS:005930).
Micron climbed 3.9% in premarket trading, while SanDisk advanced 2.2% as market participants assessed how a labor stoppage at one of the world's largest semiconductor producers might shift supply dynamics within the memory sector.
The South Korean union representing Samsung employees intends for roughly 48,000 workers to walk off the job on Thursday after negotiations over bonus payments failed to produce a settlement. The union's action is slated to last 18 days following mediation efforts that did not resolve the dispute.
Union leader Choi Seung-ho said the union had accepted the final proposal presented by the government mediator but that management had not agreed on one remaining sticking point. "We express deep regret and feel disappointed but the union plans to go ahead with the strike according to the law," Choi said.
Samsung issued a statement blaming the union for insisting on what it termed "unacceptable demands," including the size of bonuses for loss-making units. "The reason an agreement could not be reached is that accepting the labor union's excessive demands would undermine the fundamental principles of company management," the company said.
Market reaction was mixed during the trading day. Samsung shares finished 0.2% higher on Thursday after earlier falling as much as 4%. Key memory rival SK Hynix saw its shares close flat for the day.
Analysts have highlighted how a prolonged interruption at Samsung could tighten supplies across DRAM and NAND markets. Jordan Klein, a Mizuho TMT specialist, said supply is "going to remain well below DRAM and NAND demand all 2026 and probably all 2027. Pricing should at least hold high levels after rising further near term."
Industry observers note that if production at Samsung is curtailed, competitors such as Micron, SK Hynix and SanDisk stand to gain from the shifted supply-demand balance. The strike also carries broader implications; the stoppage poses a risk to South Korea's economy if it affects significant manufacturing output.
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