Hundreds of Micron Technology employees in Taiwan have taken to the streets, rejecting the company's bonus offer and threatening a strike if ongoing negotiations fail to meet their demands for significantly higher compensation.
The dispute centers on the US memory chipmaker's surging profits, driven by the booming demand for chips essential to artificial intelligence data centers. Workers argue that their proposed bonuses do not adequately reflect the company's strong financial performance or match the compensation packages seen at rival semiconductor firms.
Unions Demand 83 Months' Salary Bonus
The two labor unions representing nearly 12,000 of Micron's 15,000 workers at its Taoyuan and Taichung plants are demanding a one-off bonus equivalent to 83 months' salary. In addition to this substantial payout, they seek a permanent system where 15 percent of the company's operating profits would be allocated to worker bonuses and distributed quarterly, rather than annually.
Micron, for its part, has offered its Taiwan employees "total rewards equivalent to 35 to 68 months of pay" for fiscal 2026, with a minimum cash compensation of NT$1.7 million (approximately US$53,200). Demonstrating workers, however, have publicly stated this offer is insufficient.
"I feel that this is something we deserve, so we must stand up for it -- not just for ourselves, but also for all workers in Taiwan," said a production technician named Lin, who joined a union rally after her shift.
AI Boom Fuels Micron's Record Revenues
The timing of the dispute coincides with a period of unprecedented growth for memory chipmakers. The demand for high-performance memory chips, critical for AI infrastructure, has led to tight supply and record revenues across the industry. Micron reported revenues of US$41.5 billion in the three months ending May, highlighting its strong financial position.
Workers have pointed to bonus arrangements at South Korean competitors like Samsung Electronics and SK Hynix as benchmarks. "Micron should look at how industry rivals treat their workers," stated Ken Wu, a 49-year-old engineer. "Only then will Micron become more competitive and attract more top talent."
Earlier, Samsung Electronics successfully averted a strike by agreeing to distribute bonuses equivalent to 10.5 percent of its operating profit to semiconductor employees, setting a precedent in the competitive market.
Taiwan's Critical Role and Market Competition
Taiwan is a crucial hub for Micron, with the company investing over NT$1.6 trillion in the island and producing 50-60 percent of its chips there. The workforce's role is particularly vital as Micron races against Samsung and SK Hynix for market share in the AI-driven memory chip sector.
Neil Shah, co-founder of Counterpoint Research, emphasized the importance of capacity in this competition: "Who has the most capacity will take the most share, because capacity is the constraint right now." He added that Micron's Taiwan workforce is "super important" for maintaining momentum and that "Micron will have to find a solution," especially given the industry standard set by Samsung.
Government-mediated negotiations between the unions and Micron management began in early September. The unions have made it clear they will proceed with a strike if these talks collapse, putting significant pressure on Micron to reach an equitable agreement with its employees.