Employees at US memory chip giant Micron Technology in Taiwan have rejected a substantial bonus offer, instead demanding a permanent profit-sharing system tied to the company's booming earnings from artificial intelligence (AI). Unions representing nearly 10,000 of Micron's approximately 15,000 workers in Taoyuan and Taichung dismissed the proposed rewards, which included up to 68 months of pay for fiscal year 2026.
Bonus Offer Deemed Insufficient
Last week, Micron announced a comprehensive rewards package for its Taiwan direct labor team, equivalent to 35 to 68 months of pay for fiscal 2026. This included a minimum cash component of NT$1.7 million (approximately ₹51.11 lakh) per eligible employee. The offer came after unions threatened strike action, citing an outdated bonus structure.
However, the Taoyuan-based union quickly rejected the proposal, arguing that the “up to 68 months” figure was misleading. Union leaders stated that the calculation used lower-wage benchmarks and assumed stock awards would vest over an extended period, making the package appear more generous than it actually was. According to the union, the proposed package amounted to only about 4.4% of Micron’s operating profit, significantly short of their 15% demand.
Demanding a Share of AI-Driven Profits
Instead of a one-off reward, the union is pushing for a fundamental restructuring of Micron’s Incentive Pay Plan. Their key demands include:
- A permanent profit-sharing mechanism, allocating 15% of Micron’s global operating profit to employees, starting in fiscal 2027.
- Quarterly distribution of bonuses, rather than annual payouts, to better reflect the cyclical nature of the company’s profitability.
- A one-time payment for fiscal 2026 equivalent to approximately 83 months of salary, based on the union’s own calculations.
Union chairman Lin emphasized that the goal is to establish a “long-term, transparent and verifiable profit-sharing system” that ensures workers receive a fair share when the company is profitable, while also providing institutional safeguards during economic downturns.
Strike Vote Looms Amid Critical Talks
With mediation talks scheduled for September 18 and 21, the union has issued a warning: if Micron fails to present a concrete proposal on profit sharing, negotiations will be declared broken, and a strike vote will be initiated. This timing is crucial for Micron, as Taiwan serves as a vital hub for its production of DRAM and high-bandwidth memory (HBM), components that are in extremely high demand for AI infrastructure.
A potential strike at Micron’s largest manufacturing base could severely tighten global memory supply, especially as the AI boom continues to drive record profits. The company notably reported $28.24 billion in profit in the third quarter of 2026 alone, underscoring the union's argument for a greater share of the company's financial success.