The National Samsung Electronics Union (NSEU) staged its first walk out on Friday, signalling a shift in employee assertiveness at South Korea's most powerful conglomerate.

The union, which represents over 28,000 members, accounting for more than a fifth of Samsung Electronics' workforce, called for a one-day strike to demand better pay and working conditions.

The walkout comes at a critical time for Samsung Electronics as it races to catch up with competitors in the production of chips used in artificial intelligence (AI) applications.

While the strike is unlikely to have an immediate impact on semiconductor production or shipments, it adds pressure on the company as it aims to narrow the gap in contract chip manufacturing with Taiwan's TSMC.

Lee Hyun-kuk, an NSEU official, said that the purpose of the strike was to initiate meaningful conversations with management. The union is preparing further action on Friday, though details have not been disclosed.

Samsung maintains that there has been no impact on production or business activity, and the company remains committed to engaging with the union in ongoing talks.

The strike follows recent worker protests outside Samsung offices in Seoul and a chip production site in Hwaseong. The unrest began after the company announced a 5.1 per cent wage increase this year, which the NSEU deemed insufficient. The union is seeking additional commitments, such as improvements to the performance-based bonus system and an extra day of annual leave.

Despite the challenges posed by the strike, Samsung Electronics recently dethroned Apple to become the top smartphone seller globally in the first quarter, capturing 20 per cent of shipments. However, the company is struggling in some areas of its chip business, particularly in the production of high bandwidth memory (HBM) chips used in AI applications.

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