Memory chip giant Micron Technology faced growing labour unrest on Thursday as hundreds of employees dismissed the US company’s proposed bonus of 68 months’ salary and warning that they could go on strike over what they described as inadequate compensation.
Chipmakers such as Micron have benefited significantly from the surge in demand for artificial intelligence technology, with their profits rising sharply. However, workers are increasingly seeking a larger share of the gains generated by the industry’s growth.
Micron employees also stated that their bonuses are significantly lower than those offered by rivals such as SK Hynix and Samsung, according to AFP.
Their demands include a one-time bonus equivalent to 83 months’ salary and the introduction of a permanent scheme under which 15% of the company’s operating profit would be set aside for employee bonuses. They want the payments to be made every quarter instead of once a year.
Micron, which manufactures about 50-60% of its chips in Taiwan, has been negotiating pay and benefits with two labour unions representing almost 12,000 of the company’s 15,000 employees at its facilities in Taoyuan and Taichung.
The company said publicly last week that its Taiwan-based employees would receive total compensation ranging from 35 to 68 months of salary for fiscal 2026, including a minimum cash payout of NT$1.7 million (US$53,200).
The unions warned that workers could go on strike if negotiations with Micron’s management, being conducted with government mediation since early September, fail to produce an agreement.
However, employees protesting at a basketball court opposite Micron’s Taoyuan facility said the proposed package fell short of their expectations.
A production technician who attended the union rally after finishing her shift said employees should fight for what they believe they are entitled to, stressing that the issue extends beyond Micron workers to employees across Taiwan. She identified herself only as Lin.
Tsai, an engineer in his 40s, told AFP that Micron’s proposal had “fallen short of expectations” given the company’s substantial profit growth in recent years.
“We naturally hope to negotiate through the union using fair and lawful means to strive for the bonus we deserve,” said Tsai, who gave only his surname.
“Micron should look at how industry rivals treat their workers. Only then will Micron become more competitive and attract more top talent,” 49-year-old engineer Ken Wu said.
Micron’s Taiwan investment and record revenue
US memory chipmaker Micron said it has invested more than NT$1.6 trillion in Taiwan, calling the island a “critical hub” for its operations.
The company reported record revenue of US$41.5 billion for the three months ended in May.
‘Micron will have to find a solution’
Meanwhile, the unions’ demands come amid recent labour tensions in South Korea, where Samsung Electronics avoided a strike after reaching an agreement to distribute bonuses worth 10.5% of operating profit among its semiconductor employees.
Surging demand for silicon components used in AI data centres, particularly memory chips that remain in short supply, has driven a sharp increase in revenue for companies involved in designing, manufacturing and assembling the components.
Neil Shah, co-founder of Counterpoint Research, said Micron was competing with South Korean rivals Samsung and SK hynix to expand its share of the memory-chip market.
“Who has the most capacity will take the most share, because capacity is the constraint right now,” Shah told AFP, highlighting the importance of Micron’s Taiwan workforce in sustaining the company’s growth. “Micron will have to find a solution,” he said, especially as “Samsung has set an industry standard”.
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