Samsung Electronics’ Union Threatens First Ever Walkout Next Week 

People walk past the Samsung logo displayed on a glass door at the company's Seocho building in Seoul on April 30, 2024. (AFP)
People walk past the Samsung logo displayed on a glass door at the company's Seocho building in Seoul on April 30, 2024. (AFP)
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Samsung Electronics’ Union Threatens First Ever Walkout Next Week 

People walk past the Samsung logo displayed on a glass door at the company's Seocho building in Seoul on April 30, 2024. (AFP)
People walk past the Samsung logo displayed on a glass door at the company's Seocho building in Seoul on April 30, 2024. (AFP)

Samsung Electronics' union in South Korea will begin escalating strike action next week by staging the first ever walkout over demands for higher wages, union officials said on Wednesday.

The union, which has about 28,000 members, or more than a fifth of the company's total workforce, said it will stop work for one day on June 7 as part of broader protest measures.

The announcement was made by union officials at a live-streamed press conference, where they held a banner which read: "We can no longer tolerate labor repression, union repression."

If the union members collectively take the day off next week, it would mark the first ever walkout by Samsung Electronics workers.

Workers have been intermittently participating in protests in recent weeks outside the company's offices in the capital city Seoul as well as outside of its chip production site in Hwaseong, south of Seoul.

Responding to a decision by the company to increase wages this year by 5.1%, the union has previously said that it wanted an additional day of annual leave as well as transparent performance-based bonuses.

On Wednesday, the union accused the tech giant of failing to bring a compromise plan to negotiations held the previous day.

Samsung Electronics said in a statement on Wednesday: "We will sincerely engage in discussions with the union."

A union official defended the decision to take industrial action at a time when some parts of Samsung's business are underperforming.

"The company has been saying they are facing crisis all along for the past 10 year," a union official told reporters, but added that the firm should not use it as an excuse not to meet its demands.

The union said all company sites across South Korea would be affected by its June 7 action.

The strike announcement comes as Samsung appears to be faltering in some areas, including cutting-edge semiconductor chips.

Samsung last week replaced the head of its semiconductor unit saying a new person at the top was needed to navigate what it called a "crisis" affecting the chips industry.

More than 2,000 unionized workers of the South Korean technology giant gathered in Seoul last week to hold a rare rally to demand better wages.

The union has seen a rapid rise in membership after Samsung Electronics in 2020 pledged to put an end to its practices of discouraging the growth of organized labor.

Shares of Samsung Electronics were trading down 2.1% on Wednesday, compared with the benchmark KOSPI's 1.3% fall as of 0458 GMT.



Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
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Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)

Dell Technologies raised its annual revenue and profit forecasts on Thursday, buoyed by demand for its AI-optimized servers that are powered by Nvidia's powerful chips, sending its shares up about 3% in extended trading.

Dell's infrastructure solutions group, which includes Nvidia-powered servers, surged 38% to a record revenue of $11.65 billion in the second quarter.

The company's servers are engineered to handle AI systems' intense computational demands, including training large language models.

"Enterprise remains a significant opportunity for us, as many are still in the early stages of AI adoption," Chief Operating Officer Jeff Clarke said in a post-earnings call.

Clarke said that Dell sees an emerging opportunity in "sovereign AI" by leveraging the company's strong relationships with governments globally.

Nvidia on Wednesday said nations building AI models in their own languages were turning to its chips, and that this would contribute about low double-digit billions to its revenue in the financial year ending in January 2025.

Nvidia CEO Jensen Huang called out the partnership with Dell earlier this year, saying they were helping businesses create their own "AI factories."

Dell's stock has risen 45% this year.

Dell said on Thursday it now expects annual revenue outlook to be between $95.5 billion and $98.5 billion, up from $93.5 billion and $97.5 billion previously. It also raised its annual adjusted profit per share forecast to $7.80, plus or minus 25 cents.

Demand for its AI-optimized servers rose about 23% sequentially to $3.2 billion in the second quarter. The backlog for these AI servers was $3.8 billion.

"Our pipeline has grown to several multiples of our backlog," Clarke said in a statement.

Revenue for the second quarter ended Aug. 2 rose about 9% to $25.03 billion, beating analysts' average estimate of $24.14 billion, according to LSEG data. It reported adjusted profit per share of $1.89 per share, compared with estimates of $1.71 per share.

While AI server demand soared, Dell's PC business struggled, losing market share to rivals. However, a strong refresh cycle for

AI PCs are expected next year after Microsoft ends support for Windows 10.

Revenue for the client solutions group - home to PCs - fell about 4% to $12.41 billion.

"Dell lost PC shipment shares in key markets in the second quarter. It is the top vendor in the US business market, but its competitors have shown growth and gained more shares than they did a year ago," said Mikako Kitagawa, director analyst at Gartner.

The company took a $328 million charge for workforce reductions in the second quarter.

Separately, Reuters exclusively reported earlier on Thursday that Dell is again exploring a possible sale of cybersecurity firm SecureWorks, following previous unsuccessful attempts to find a buyer.