Samsung Asks Court to Block Illegal Strike Activities by Unions

A South Korean national flag (L) and a Samsung flag (R) flutter outside the company's Seocho building in Seoul on April 7, 2026. (Photo by Jung Yeon-je / AFP)
A South Korean national flag (L) and a Samsung flag (R) flutter outside the company's Seocho building in Seoul on April 7, 2026. (Photo by Jung Yeon-je / AFP)
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Samsung Asks Court to Block Illegal Strike Activities by Unions

A South Korean national flag (L) and a Samsung flag (R) flutter outside the company's Seocho building in Seoul on April 7, 2026. (Photo by Jung Yeon-je / AFP)
A South Korean national flag (L) and a Samsung flag (R) flutter outside the company's Seocho building in Seoul on April 7, 2026. (Photo by Jung Yeon-je / AFP)

Samsung Electronics asked a court on Thursday to block its South Korean labour unions engaging in illegal activities during a planned strike, a spokesperson said, as a wage dispute threatens to disrupt operations at the world's top memory chipmaker.

Samsung did not elaborate on details of its legal action. Unions labelled it a "declaration of war," accusing the company of infringing on its right to strike, which ⁠is protected under the ⁠law.

Unionized workers at Samsung last month voted to authorize strike plans and threatened to walk out for 18 days from May 21, should they fail to agree on a wage deal with management.

The unions also plan to ⁠hold a major rally on April 23, ramping up pressure on Samsung during wage negotiations.

Samsung workers, frustrated by a pay gap with crosstown rival SK Hynix, are calling on Samsung to remove its performance pay cap and link bonuses to operating profit.

The company estimated it made an operating profit of 57.2 trillion won ($38.85 billion) for the January to March period, more than an eightfold ⁠jump ⁠from 6.69 trillion won a year earlier.

Samsung's union leader told Reuters that a potential strike could affect about half the output at Samsung's giant semiconductor complex in Pyeongtaek, south of Seoul, the capital.

A strike at the world's largest manufacturer of memory chips could worsen bottlenecks in global supply of semiconductors, stemming from robust demand for artificial intelligence data center operations that has curbed supply to industries from cars and computers to smartphones.



AI Demand Drives Chipmaker TSMC's Net Profit to Fresh Record

FILE PHOTO: The logo of Taiwan Semiconductor Manufacturing Company (TSMC) is displayed outside of TSMC Museum of Innovation in Hsinchu, Taiwan April 9, 2026. REUTERS/Ann Wang/File Photo
FILE PHOTO: The logo of Taiwan Semiconductor Manufacturing Company (TSMC) is displayed outside of TSMC Museum of Innovation in Hsinchu, Taiwan April 9, 2026. REUTERS/Ann Wang/File Photo
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AI Demand Drives Chipmaker TSMC's Net Profit to Fresh Record

FILE PHOTO: The logo of Taiwan Semiconductor Manufacturing Company (TSMC) is displayed outside of TSMC Museum of Innovation in Hsinchu, Taiwan April 9, 2026. REUTERS/Ann Wang/File Photo
FILE PHOTO: The logo of Taiwan Semiconductor Manufacturing Company (TSMC) is displayed outside of TSMC Museum of Innovation in Hsinchu, Taiwan April 9, 2026. REUTERS/Ann Wang/File Photo

Taiwanese chip manufacturer TSMC said Thursday that net profit for January-March leaped to a fresh quarterly record, boosted by the race to develop artificial intelligence technology.

Massive global demand for AI hardware means business is booming for TSMC, the world's biggest contract maker of microchips used in everything from Apple phones to Nvidia's AI processors.

TSMC said its net profit for the first quarter of 2026 rose a whopping 58.3 percent from a year ago to NT$572.5 billion ($18 billion).

The figure trounced estimates of NT$540.20 billion in a Bloomberg survey of analysts.
Governments and tech giants are pouring hundreds of billions of dollars into building new data centers that can run and train AI tools such as chatbots, image generators and agents that can execute tasks.

Last month, Jensen Huang, head of top US chip designer Nvidia, said the entire tech world feels they could develop their AI and grow revenue "if they could just get more capacity".

Ahead of the earnings announcement, Ian Lyall at Proactive Investors said it appeared TSMC is "so deeply embedded in the AI supply chain that macro headwinds are struggling to leave a mark".

"Advanced-node chip production, the bleeding-edge manufacturing that only TSMC can reliably deliver at scale, is running at capacity," he noted.

TSMC is "supplying chips for artificial intelligence accelerators, next-generation smartphones, and the data center build-out that is consuming capital at a pace that has surprised even its most bullish observers", Lyall said.

A weaker Taiwanese dollar had also boosted TSMC's revenues from overseas sales, AFP reported.

On Thursday, TSMC said net revenue for the first quarter came in at NT$1.13 trillion, up 35.1 percent year-on-year.

A note from UBS analysts had predicted strong quarterly results for TSMC but warned that consumer demand was weakening as a result of higher prices caused by a global memory chip shortage fueled by the AI boom.

"Cloud AI demand continues to strengthen, but we think supply constraints will limit meaningful upside for TSMC this year," the UBS team said.

"Middle East tensions add a layer of macro uncertainty, but AI spend should stay insulated, barring a protracted conflict."

The UBS analysts predicted "limited disruption from tight helium supply on TSMC's production".

Helium gas is a key material in the chip supply chain, and Qatar -- one of the countries affected by the war in the Middle East -- is one of its few large-scale producers.

TSMC said Thursday it does not expect the war to impact its supply of chipmaking materials such as helium and hydrogen in the near term.


EU Warns Meta WhatsApp AI Fee Breaches Antitrust Rules, Orders Rollback

FILED - 27 May 2025, Mecklenburg-Western Pomerania, Schwerin: The Facebook, Messenger, Instagram and WhatsApp apps are shown on a smartphone display that reflects the logo of the AI application Meta AI. Photo: Jens Büttner/dpa
FILED - 27 May 2025, Mecklenburg-Western Pomerania, Schwerin: The Facebook, Messenger, Instagram and WhatsApp apps are shown on a smartphone display that reflects the logo of the AI application Meta AI. Photo: Jens Büttner/dpa
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EU Warns Meta WhatsApp AI Fee Breaches Antitrust Rules, Orders Rollback

FILED - 27 May 2025, Mecklenburg-Western Pomerania, Schwerin: The Facebook, Messenger, Instagram and WhatsApp apps are shown on a smartphone display that reflects the logo of the AI application Meta AI. Photo: Jens Büttner/dpa
FILED - 27 May 2025, Mecklenburg-Western Pomerania, Schwerin: The Facebook, Messenger, Instagram and WhatsApp apps are shown on a smartphone display that reflects the logo of the AI application Meta AI. Photo: Jens Büttner/dpa

The European Commission said on Wednesday it intended to order Meta Platforms to reinstate rival artificial intelligence assistants on its WhatsApp messaging service after the U.S. tech giant imposed an access fee. "The Commission notified Meta that the revised policy seems to have the same effect of excluding third-party AI assistants from WhatsApp and thus appears at first sight to be in breach of EU competition rules," the EU's executive arm said, Reuters reported.

Interim measures, which the Commission imposes when it has concerns of damage to competition, would remain in place until the end of the investigation, it said.

"To prevent serious and irreparable harm to competition, the Commission intends to order Meta to reinstate access for third-party AI assistants under the same conditions as before 15 October 2025," it added in a statement.

Meta previously informed the Commission in March that it would allow rival AI assistants on WhatsApp for one year, contingent on a fee, after initially planning to ban third-party AI chatbots from WhatsApp Business.

"The European Commission is proposing to use its regulatory powers to enable some of the largest companies in the world to use the paid-for WhatsApp Business product for free," a Meta spokesperson said in an emailed statement.

"This means that a small bakery in France paying to use the service to take croissant orders will be picking up the tab for OpenAI. Small European businesses shouldn't foot OpenAI's bill," the spokesperson added.

The Commission also said that its investigation had been expanded to Italy, where the Italian competition watchdog had opened its own probe last year.


OpenAI to Open First Permanent London Office in 2027

FILE PHOTO: OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
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OpenAI to Open First Permanent London Office in 2027

FILE PHOTO: OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

OpenAI said on Monday it has secured its first permanent office in London, expanding capacity to meet growing demand in the UK and building on the ChatGPT maker's plans to make the city its largest research hub outside the United States.

Here are some details ⁠on the new ⁠London office:

The office is expected to open in 2027, with capacity for 544 team members, Microsoft-backed OpenAI said.

The ⁠space is located at Regent Quarter, spanning Jahn Court and the Brassworks Building in the King's Cross area.

OpenAI currently employs around 200 people in London across research, engineering, customer support, policy, and sales.

Last week, OpenAI said it was ⁠pausing ⁠its main data center project in Britain due to an unfavorable regulatory environment and high energy costs, a move that dealt a blow to the UK government's push to position the country as a global AI hub.