[Exclusive] Both SK hynix and Samsung Halted... Crisis Hits Semiconductor Factories

Twelve Ready-mixed Concrete Manufacturers in Yongin Halt Deliveries
Widespread Construction Delays Inevitable
Disruptions Also Hit Samsung Pyeongtaek Campus Project
KRCTU Insists on 6% Increase in Transportation Rates

It has been confirmed that all ready-mixed concrete pouring operations at the SK hynix semiconductor cluster construction site in Cheoin-gu, Yongin, Gyeonggi Province, have been completely halted due to the strike by the Korea National Ready-mixed Concrete Transport Workers’ Union (KNRCTWU). Since even the concrete pouring schedule at the Samsung Electronics Pyeongtaek Campus construction site has been canceled, there are growing concerns that the current strike may cause widespread damage across the domestic semiconductor industry construction sector.

According to industry sources on June 11, the strike by the KNRCTWU has continued for four consecutive days, leading to the cancellation of all shipping schedules for ready-mixed concrete manufacturers supplying the SK hynix Yongin semiconductor cluster. Covering approximately 4.2 million square meters (1.27 million pyeong), the SK hynix Yongin semiconductor cluster is considered one of the largest private investment projects in Korea. It is expected to house four state-of-the-art semiconductor factories and various advanced facilities related to semiconductor production. More than ten ready-mixed concrete manufacturers in Yongin, including Sungsin Ready-mixed Concrete and Halla Encom, have been supplying concrete to the site, but shipments have now been suspended due to the strike.

Pyeongtaek Samsung Electronics Semiconductor Construction Site.

Since the strike began, ready-mixed concrete manufacturers have been mobilizing their directly operated mixer trucks, contracted vehicles, and even ready-mixed concrete transport operators affiliated with the Korean Construction Workers’ Union, who are not participating in the strike, in an all-out effort to maintain deliveries. However, according to the industry, more than 90% of ready-mixed concrete transport operators in the Pyeongtaek and Yongin regions are members of the KNRCTWU—the union leading the strike. In addition, local manufacturers operate very few directly owned mixer trucks, making the logistics disruption particularly severe. An industry insider stated, "As of June last year, the average daily ready-mixed concrete shipment volume in the Seoul metropolitan area was about 200,000 cubic meters, but current supply is less than 10% of normal levels."

On the same day, the scheduled semiconductor concrete pouring at the Samsung Electronics Pyeongtaek construction site was also canceled, indicating that the impact of the ready-mixed concrete transport workers’ strike is spreading across the Pyeongtaek and Yongin semiconductor cluster construction sites. Previously, union members from the KNRCTWU blocked the batch plant entrance at the Samsung Electronics Pyeongtaek construction site with their personal vehicles, which forced two local manufacturers to halt deliveries and led to the cancellation of pouring operations. Industry experts are concerned that, given the tightly coordinated schedules required for semiconductor facility construction, any delay in ready-mixed concrete pouring could have a cascading effect on subsequent processes, resulting in extensive and uncontrollable damage.

Ready-mixed concrete truck drivers' union went on strike on the 8th, demanding the signing of a wage and collective bargaining agreement. Ready-mixed concrete trucks are parked at a company in Anyang, Gyeonggi Province. Photo by Yonhap News

The KNRCTWU began its strike on June 8, demanding an increase in ready-mixed concrete transport rates in the Seoul metropolitan area (Seoul, Gyeonggi, and Incheon). On June 9, under the mediation of the Ministry of Land, Infrastructure and Transport, the union and manufacturers reached a tentative agreement to raise transport rates by 4,200 won (5.5%) per trip. However, among the 7,517 union members in the metropolitan area, 7,222 (96.1%) participated in the vote, and 4,931 (68.3%) voted against the proposal, ultimately rejecting it. As the KNRCTWU continues to insist on raising the metropolitan transport rates by about 6%—the level found in the Daejeon region—there are growing expectations that negotiations will drag on.

A KNRCTWU representative stated, "Since the tentative agreement was rejected in the union vote, we plan to resume negotiations with management," adding, "We will continue the strike until an agreement acceptable to our union members is reached."

This content was produced with the assistance of AI translation services.