A Taiwanese union representing workers at Micron Technology has escalated its labour dispute by warning it could move towards a strike unless the U.S. memory chipmaker agrees to a permanent profit-sharing system. According to Reuters, Jerry Lin, chairman of the union representing workers at Micron's operations in Taoyuan, stated that if there is no concrete proposal on September 18 and 21 and employees feel the company is simply dragging out the process, they will declare the negotiations have broken down and move towards a strike vote. The union represents workers at Micron's Taoyuan plant, which is the company's largest manufacturing hub for DRAM and high-bandwidth memory (HBM) chips, key components in AI servers. While no strike has been called and there has been no impact on production, any labour action could amplify supply concerns in an already tight memory chip market.
Micron's Taiwan workers have officially rejected a record employee compensation package worth NT$1 million (approximately $31,650) in cash bonus, despite the company's efforts to resolve ongoing labour disputes. According to reports from Reuters, the union representing workers at Micron's Taoyuan plant officially rejected the company's bonus proposal, calling the package a distraction. The full package, which Micron called the largest rewards package in company history, will see each employee earn a minimum of NT$1.7 million ($53,809.39) in total compensation. Under the scheme, employees in Taiwan who joined before August 29, 2025 will receive a T$1 million ($31,498) cash bonus, while those who joined later will receive a prorated amount. The company announced this reward package on September 11 after the union threatened to strike, with more than 60,000 employees globally receiving scaled rewards for fiscal year 2026. For direct manufacturing and production-line workers, the total bonus rewards are equivalent to 35 to 68 months of basic salary.
The record payout has failed to resolve the dispute as workers are demanding a permanent profit-sharing formula rather than one-off compensation. As reported by Reuters, the union is pushing for structural change, including a permanent profit-sharing model in which 15% of the company's operating profits are allocated directly to workers and distributed quarterly. The union said it was seeking a long-term, transparent and verifiable profit-sharing system rather than one-off rewards, reiterating its demand that 15% of Micron's operating profit be allocated to employees globally. The union criticised Micron for announcing the rewards while labour mediation was under way without first reaching an agreement with the union. The unions' complaint centers on Micron's current Incentive Pay Plan, which has been paying out around 2.6 months of salary under a cap that tops out near five months. This contrasts sharply with the company's performance, where quarterly revenue jumped 346% and the company banked $28.24 billion in profit in just Q3 2026 alone. The company's cumulative net income from sales of high-demand memory chips has crossed a staggering $50.47 billion across the last four quarters.
The unions have justified their 15% profit-sharing demand through comprehensive peer comparisons across the semiconductor industry. According to Reuters, the union has pointed to South Korean rivals Samsung Electronics and SK Hynix, which have profit-sharing schemes for employees, in pressing their demands. The unions circulated data showing that Samsung's DS division distributes 10.5% of operating profit under a deal that called off an 18-day strike involving as many as 48,000 members in May. SK Hynix reached a settlement last September to allocate 10% of annual operating profit directly to employees as performance bonuses for the next decade, eliminating bonus caps. Domestically, Micron trails all major Taiwanese chipmakers, with Macronix paying 15% of net profit, Nanya 6%, Powerchip 5%, TSMC 4.7%, and Winbond 2%. The unions aren't asking to be paid better than the industry - they're asking to be at least in the same ballpark. Micron's current offer guarantees $54,000 compared to SK Hynix's formula that could pay workers around $547,000 this year.
Taiwan represents a critical manufacturing base for Micron, accounting for 50 to 60% of its chips and most of its high-bandwidth memory production. According to Reuters, the threat of a strike continues to loom following the union's rejection of the proposed payout. Further labour mediation sessions have been scheduled between the company and the Taoyuan union, as well as another representing workers in the central Taiwanese city of Taichung. Together, the unions represent more than 80% of Micron's roughly 15,000 employees in Taiwan, according to the Taoyuan union. The Taoyuan union also plans to hold an event for workers on Thursday near Micron's facility at the Hwa Ya Technology Park. The union has pointed to profit-sharing arrangements at rival chipmakers including Samsung and SK Hynix, as well as Taiwanese companies such as TSMC, Nanya and Winbond, to support its demand for enhanced employee participation in company profits. Taiwan law requires mediation before a legal strike, so if the upcoming mediation collapses, a formal strike vote follows.
The dispute underscores growing pressure on memory chipmakers to share the windfall from the AI boom, with any labour action potentially amplifying supply concerns in an already tight memory chip market. According to Reuters, Micron last week announced fiscal 2026 rewards for more than 60,000 employees globally following what it described as an "extraordinary year" for the company. However, Micron, which has not linked the fiscal 2026 rewards to the labour dispute in Taiwan, did not directly address the strike threat in an emailed response to Reuters. "We will continue listening to our team members' perspectives and remain committed to engaging in the mediation process in good faith," the company said. The Central Taiwan Science Park administration has warned that a stoppage could ripple out across the island's chip supply chain and assigned staff to keep both sides talking.
