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Micron Taiwan Faces Strike Threat Over Profit-Sharing Dispute

Electronic Technology · Semiconductors · cnyes · 2026-09-01

Over 80% of Micron's Taiwan union members support a strike, demanding a revamped bonus structure as the company navigates high demand for AI memory chips.

What Happened

Strike Threat: Micron's labor union in Taiwan is threatening to strike over dissatisfaction with the company's incentive pay plan (IPP). With over 80% of members voting in favor of industrial action, the dispute poses a potential risk to production at Micron's largest global manufacturing hub.

Union Demands: The union is calling for the replacement of the current IPP with a profit-sharing model that allocates 15% of operating profits to employees on a quarterly basis. They argue that current bonuses fail to reflect the company's massive profits from the AI boom and lag behind compensation at South Korean rivals.

Company Stance: Micron maintains that its total compensation package—including base salary, performance bonuses, and equity grants—is competitive, noting that this year's bonuses will reach record highs. The company is continuing to engage with employees through established channels while adhering to legal procedures.

Industry Impact: As Taiwan is critical to Micron's DRAM and HBM production, any work stoppage could severely disrupt the global memory chip supply chain. Local authorities are closely monitoring the situation and are prepared to facilitate mediation to ensure industrial stability.

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