Shares of Samsung Electronics (07747) in the south fell more than 4%, dropping over 9% in early trading. As of the publication, the stock was down 3.86% at HK$133.15, with a trading volume of HK$2.192 billion. In terms of news, a JP Morgan research report pointed out that the National Samsung Employees Union (NSEU) has announced plans to launch an 18-day large-scale strike from May 21 to June 7. Negotiations are still ongoing, with management expressing a willingness to seek an amicable resolution. However, JP Morgan stated that the ultimate impact on profitability will depend on the duration of the strike and the outcome of negotiations. If all union demands are met, Samsung's operating profit in 2026 could face a downward risk of 7% to 12%, while semiconductor department revenues may suffer a 1% to 2% decline due to production halts. CITIC Securities previously stated that the potential production halts at Samsung could further exacerbate global shortage of storage chips, creating a window of market expansion and increased market share for domestic storage giants. At the same time, Samsung's contract competitors such as TSMC, as well as storage competitors SK Hynix and Micron, could potentially benefit from this labor dispute.