Samsung Electronics is wrestling with an escalating labour crisis that is complicating its efforts to catch up with rivals in the booming market for semiconductors used in artificial intelligence systems.

The Korean technology giant pleased investors earlier this month with its expectations that second-quarter operating profits would increase by almost 1,500 per cent year on year, as the global memory market rebounds from a prolonged slump.

But the stronger-than-expected guidance came amid growing worker unrest and setbacks in chip production that have seen it fall behind rivals in areas identified as essential for future growth. Samsung shares have risen about 7.5 per cent this year, against a 65 per cent rally for smaller domestic rival SK Hynix.