A labor union representing Micron Technology (MU.US) employees in Taiwan warned on Tuesday that it could move toward a strike unless the US memory chip maker agrees to establish a permanent profit-sharing scheme, escalating a dispute at its largest manufacturing site. Taiwan serves as a critical production hub for Micron's DRAM and high-bandwidth memory (HBM) chips, which are essential components for AI servers. Although no strike has been formally declared and production remains unaffected, any labor action could intensify supply concerns in an already tight memory chip market.
The standoff underscores the mounting pressure on memory chip manufacturers to share the spoils of the AI boom with their workforce. The Taiwan union pointed to South Korean rivals Samsung Electronics and SK Hynix, both of which operate employee profit-sharing plans, to bolster its demands. The union stated it is seeking a long-term, transparent, and verifiable profit-sharing structure rather than one-off bonuses, reiterating its call for 15% of Micron's operating profits to be distributed to employees globally.
"If no concrete proposal is put forward by September 18 and 21, and employees feel the company is merely stalling, we will declare negotiations broken and move toward a strike vote," said Jerry Lin, union chairman representing workers at Micron's Taoyuan plant, in a statement that underscored the urgency of the situation.
Micron last week announced fiscal 2026 awards for more than 60,000 employees worldwide following what the company described as an "extraordinary year." Under the plan, Taiwan-based employees hired before August 29, 2025, will receive a cash bonus of NT$1 million (approximately $31,498), with those hired later getting prorated amounts. Previous reports indicated that total compensation for Taiwan production line workers equates to 35 to 68 months of salary, with minimum cash compensation set at NT$1.7 million. Junior engineers received total rewards averaging NT$3.4 million, including about NT$2.9 million in cash, with the remainder calculated in equity grant value.
However, the Taoyuan union, which represents roughly two-thirds of Micron's Taiwan workforce, rejected the offer, insisting on the inclusion of 15% of operating profits in bonus distribution and maintaining its strike threat. The union argued the new awards fail to address its demand for a permanent profit-sharing mechanism and criticized Micron for announcing the bonuses while labor mediation was still underway and before reaching an agreement with the union.
Micron did not link the fiscal 2026 awards to the Taiwan labor dispute and did not directly respond to the strike threat. The company stated, "We will continue to listen to our team members and remain committed to engaging sincerely in the mediation process." Further labor mediation sessions have been scheduled between the company, the Taoyuan union, and another union representing employees in Taichung, central Taiwan. According to the Taoyuan union, the two unions together represent more than 80% of Micron's approximately 15,000 employees in Taiwan. The Taoyuan union also plans to hold an event for employees near Micron's Huaya Technology Park facility on Thursday.