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View all search resultsMicron promises Taiwan workers up to 68 months' pay after strike threat
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The logo of United States-based chipmaker Micron Technology and a rising stock graph are pictured on June 11. (Reuters/Dado Ruvic)
U
S memory chip giant Micron Technology said Friday that its workers in Taiwan will receive the equivalent of up to five years and eight months of pay, as labor unions threaten to strike unless the company overhauls its bonus system.
Global chip companies, including Micron, have been major beneficiaries of booming demand for artificial intelligence technology but as their earnings skyrocket, many workers are demanding a bigger cut of profits.
"Taiwan direct labor team members will receive total rewards equivalent to 35 to 68 months of pay, with minimum cash compensation of NT$1.7 million" (US$53,700) for fiscal 2026, Micron said in a statement.
"With approximately 15,000 team members and more than NT$1.6 trillion invested in Taiwan, Micron continues to support the people, innovation and manufacturing capabilities that strengthen Taiwan's position as a global semiconductor leader," it said, describing the island as a "critical hub".
Micron, which produces around 50-60 percent of its chips in Taiwan, has been locked in talks with two labor unions representing nearly 12,000 workers at its Taoyuan and Taichung plants.
The unions are seeking a one-off bonus of 83 months' salary as well as a permanent system that allocates 15 percent of the company's operating profits to worker bonuses, distributed quarterly rather than annually.
Their demands follow recent labor disputes in South Korea where Samsung Electronics averted a strike by agreeing a deal to distribute bonuses equivalent to 10.5 percent of operating profit to its semiconductor employees.
In a statement, the union representing workers at Micron's Taoyuan plant rejected the company's proposal on Friday, saying it had "sidestepped" discussion of the bonus system.
"We are seeking a system that allows for a reasonable sharing of profits when the company is profitable and provides institutional safeguards during economic cycles," the union said.
"If the company fails to respond to these demands, the union will continue to move towards a strike."
The unions have told AFP that if government-mediated negotiations with Micron, which began in early September, fall apart, workers will be asked to vote on whether to strike.
A previous internal survey showed that around 80 percent of members had expressed support for a strike, the unions said.
Massive demand for the silicon components used in AI data centers – especially memory chips, which are in short supply – has sent revenues soaring for firms that design, produce and assemble them.
Micron posted record revenue of US$41.5 billion for the fiscal third quarter of 2026.
