Micron (MU) stock was down 2.4% in Tuesday’s premarket after its Taiwan unions announced they are moving toward possible strike action over a bonus dispute.
The unions represent workers in Taoyuan and Taichung, covering nearly 10,000 of Micron’s roughly 15,000 Taiwan-based employees. Taiwan is Micron’s largest manufacturing base, where it produces DRAM and high-bandwidth memory chips.
More than 80% of union members who took part in an internal survey in August backed strike action, the unions said.
The core of the dispute is how Micron shares its profits. The unions say the current Incentive Pay Plan does not reflect the company’s booming profitability and does not clearly explain how its performance metric is calculated.
Micron workers in Taiwan are considering a strike over their bonuses.
A recent survey found that 80% of workers support going on strike, the union wants Micron to introduce a profit-sharing system, similar to what Samsung and SK hynix already have.
Samsung gives employees… pic.twitter.com/VC5p0iMcxJ
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For fiscal 2026, unions are seeking an additional one-off bonus payment. They claim their proposal would work out to around 83 months’ salary per Taiwan-based employee.
From fiscal 2027, they want the current system replaced with a plan that allocates 15% of operating profit to bonuses, paid out quarterly rather than annually.
Micron pushed back, saying its compensation package already includes base salary, annual performance incentives, operational bonuses, and equity programmes. The company says this year’s performance bonus will be the highest in its history.
The unions pointed to profit-sharing deals at Samsung and SK Hynix as the benchmark. Samsung averted an 18-day strike in South Korea in May after agreeing to a bonus pool worth 10.5% of its chip division’s operating profit. SK Hynix previously committed 10% of annual operating profit to employee bonuses.
Micron’s Taiwan unions say those deals have widened the pay gap between their members and South Korean counterparts.
Under Taiwanese law, a strike must be preceded by mediation, so any work stoppage is not imminent. Taiwan’s government-run Central Taiwan Science Park administration said it has staff assigned to help facilitate talks and could launch formal mediation if needed.
Micron reported record revenue of $41.46 billion and net income of $28.24 billion for its fiscal third quarter ended May 28. The company’s market value stood at around $1.10 trillion on Tuesday.
The company has also committed $250 billion in U.S. manufacturing investment through 2035, adding to its spending obligations.
Taiwan authorities have said Micron has invested NT$1.4 trillion ($43.9 billion) on the island. A strike, they warned, could affect workers, Micron’s operations, and Taiwan’s wider semiconductor supply chain.
Taiwan’s President Lai Ching-te addressed the situation Tuesday, saying the semiconductor sector was built through long-term cooperation and that Taiwan had consistently honoured its commitments to global supply.
Micron said it will continue to engage with employees through existing channels while respecting applicable legal processes.
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