Micron Faces Strike Threat at Taiwan Facility Over Profit-Sharing Dispute

Micron Technology is facing the possibility of strike action at its Taiwan-based production facility following failed profit-sharing negotiations between the company and union representatives. The workers are advocating for a long-term profit-sharing framework that would dedicate 15% of the company's operating profit toward quarterly employee bonuses, aligning with existing compensation structures at competing firms SK Hynix and Samsung Electronics.

Despite offering bonuses equivalent to 35-68 months of salary for FY2026, Micron's proposal was rejected by union leadership. The Taoyuan union has announced plans to hold a strike vote in early October, with an additional mediation session scheduled for Oct. 22 involving the Taichung union.

Lin Che-jui, chair of the Taoyuan union, emphasized that employees have been dissatisfied with the current bonus framework since last year and are seeking systemic reform rather than temporary payouts. Micron's proposal was met with skepticism by union officials, who claim that management has not provided a clear plan for implementing a revised bonus structure.

The company's Taiwan facility represents a critical component of its global manufacturing infrastructure, with the Taoyuan and Taichung unions combined representing over 70% of Micron's approximately 15,000-strong Taiwan workforce. The outcome of these negotiations could have significant implications for the semiconductor industry, particularly given Micron's recent robust financial performance and accelerating demand for memory chips.