Micron workers at Taiwan plant vote to strike over bonuses
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Workers attend a rally organised by the union representing Micron Technology employees at Hwa Ya Technology Park in Taoyuan, Taiwan, on Sept 17.
PHOTO: REUTERS
- Micron workers at the Taoyuan plant in Taiwan voted for strike action after talks on bonus reforms collapsed, the union said on Oct 7.
- Workers want an 83-month one-off bonus and a permanent system giving 15% of operating profits to bonuses, with Micron’s offer of up to 68 months rejected.
- The dispute comes as AI chip demand lifts profits across the industry, and Micron says Taiwan is its “critical hub” after investing more than NT$1.6 trillion there.
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TAIPEI - Hundreds of workers at a Micron Technology plant in Taiwan have voted to strike, their union said on Oct 7, after talks with the US memory chip giant over bonus reforms collapsed.
Global chip companies, including Micron, have been major beneficiaries of soaring demand for artificial intelligence.
But as their earnings skyrocket, many workers are demanding a bigger cut of profits.
Micron, which makes around 50% to 60% of its chips in Taiwan, has been locked in talks over remuneration with two labour unions representing nearly 12,000 of 15,000 workers at its Taoyuan and Taichung plants.
Members of the union in Taoyuan have “obtained the legal right to conduct a strike and establish strike picket lines”, union secretary Chen Yen-kai told a news conference.
Of the 2,258 eligible union members at the Taoyuan plant, 2,012 cast ballots, with 1,994 voting in favour of strike action and 14 against, Chen said.
Four ballots were invalid in the vote held over recent days.
Jerry Lin, head of the Taoyuan union, said the union has yet to set a strike date, but noted that a “surprise strike” could be called via text message to members.
In the meantime, he urged Micron to present “a concrete proposal” following its board meeting scheduled for Oct 8 and 9 (US time) before the union “formally proceeds to a strike”.
The Taichung union, which represents around 11,000 workers at the larger plant, told AFP news agency its talks with Micron will continue as scheduled, despite the strike action in Taoyuan.
The unions are seeking a one-off bonus of 83 months’ salary as well as a permanent system that allocates 15% of the company’s operating profits to worker bonuses, distributed quarterly rather than annually.
“What we want is to establish an open and transparent profit-sharing system,” Lin said, rejecting the company’s one-off bonus, which he described as leaving employees “at the mercy of management”.
Micron’s announcement in September that it would give the equivalent of up to 68 months of pay to staff was rejected by workers.
The unions said the one-off payment was insufficient and “clearly lagging behind” its competitors.
Insatiable global appetite for the silicon components used in AI data centres – especially memory chips, which are in short supply – has sent revenues soaring for firms that design, produce and assemble them.
The Micron unions’ demands follow recent labour disputes in South Korea, where Samsung Electronics averted a strike by agreeing to a deal to distribute bonuses equivalent to 10.5% of operating profit to its semiconductor employees.
That agreement means around 78,000 employees from Samsung’s 125,000-strong domestic workforce are eligible to receive a bonus of roughly US$370,000 (S$473,000) in 2026, based on a market estimate of profits.
Micron has also seen stellar financial results.
The US company posted record revenue of around US$133 billion for fiscal year 2026 – up 256% from US$37 billion in the previous year.
Micron said it hears “the concerns our team members have raised” and will “take them seriously”.
“We remain committed to listening to our team members and engaging with our unions in good faith,” it added.
Micron has said more than NT$1.6 trillion (S$64.2 billion) has been invested in Taiwan, describing the island as its “critical hub”. AFP