The labor union at Micron's Taiwan plant, a U.S. memory semiconductor company, said on the 1st (local time) it plans to strike, demanding an overhaul of the performance bonus system and a broader profit share. The union also demanded a one-time additional performance bonus equivalent to 83 months of salary per employee this year.
Reuters reported that two unions representing workers at Micron's business sites in Taoyuan and Taichung said that, in an internal online survey conducted last month, more than 80% of participating members supported a strike.
The two unions have close to 10,000 members. Of the 15,000 Micron employees working in Taoyuan and Taichung, 10,000—about two-thirds—are members of the two unions. However, the survey was a preliminary internal poll and not a formal strike ballot.
Micron's Taiwan subsidiary told Reuters, "This year's performance bonus payout will be the largest in the company's history," adding, "We will continue to communicate with employees through existing channels while complying with relevant legal procedures."
The strike warning comes as the memory crunch deepens and profits across the semiconductor industry rise. Micron, the world's No. 3 memory semiconductor company, reported sales of $41.46 billion from March to May this year, up 346% from a year earlier. Operating profit surged 1,253% over the same period.
Micron's union cited the profit-sharing practices of Samsung Electronics and SK hynix, arguing that "the wage gap between Micron employees and employees at Korean semiconductor corporations has widened." It emphasized that a sweeping profit distribution is needed.
The union demanded, separate from existing performance bonuses, a one-time bonus equivalent to 83 months of salary per employee. Starting in fiscal 2027, it proposed abolishing the current performance bonus system and introducing a plan to pay quarterly bonuses funded by 15% of operating profit. It also wants the payout cycle moved from once a year to quarterly.
If the strike materializes, the impact is expected to be significant. Taiwan is Micron's largest production base, manufacturing DRAM and high-bandwidth memory (HBM).