Micron union in Taiwan to launch one-day strike as bonus dispute escalates
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Mediation between Micron and the Taoyuan union ended without an agreement in September.
PHOTO: REUTERS
- Taiwan’s Micron union in Taoyuan will strike on Oct 20 over a bonus dispute, alongside mediation with the Taichung union.
- The action aims to support Taichung workers and pressure Micron for a clear profit-sharing plan.
- Micron employs about 15,000 people in Taiwan and makes DRAM and HBM chips, key parts for AI servers.
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TAIPEI – A union representing Micron Technology workers in Taoyuan, Taiwan, said it would launch a one-day strike on Oct 22 to coincide with a mediation meeting between the US chipmaker and another collective representing workers at its Taichung operations, escalating a dispute over employee bonuses.
The strike raises the stakes in a labour dispute at one of Micron’s most important manufacturing hubs, where it produces DRAM and high-bandwidth memory (HBM) chips, key components in AI servers.
The Taoyuan union said on Oct 20 that the strike was intended to show solidarity with the Taichung union and to increase pressure on Micron to put forward a concrete profit-sharing proposal.
Micron employs about 15,000 people in Taiwan, with separate unions representing workers at its Taoyuan and Taichung operations. The company has said it has invested more than NT$1.6 trillion (S$62.9 billion) on the island.
Mediation between Micron and the Taoyuan union ended without an agreement in September. The union secured authorisation from its members to strike in early October.
The immediate impact on production was unclear, but prolonged disruption could tighten already strained supplies of memory chips used in AI infrastructure.
The Taichung union, which represents workers at Micron’s largest operation in Taiwan, remains in negotiations with the company. It has yet to hold a vote on whether to strike.
The Taoyuan union said it wanted a concrete offer on a one-off bonus for 2026 and a transparent, predictable profit-sharing system for the future. It said the planned stoppage was a warning strike rather than a break in talks and that it would be ready to sign an agreement if Micron made an acceptable proposal.
“Through our actions, we will make our dissatisfaction with the current system heard and demonstrate our determination to establish a fair profit-sharing system,” the Taoyuan union said in a statement on Oct 19.
Taiwanese President Lai Ching-te called last week for Micron and its workers to negotiate “sincerely”.
In a statement, Micron said the company was “committed to constructive engagement with the Taoyuan and Taichung unions to reach a solution that works for all parties”.
The unions are seeking a one-off bonus of 83 months’ salary as well as a permanent system that allocates 15 per cent of the company’s operating profits to worker bonuses, distributed quarterly rather than annually.
Micron, which makes around 50-60% of its chips in Taiwan, said last month that it would give the equivalent of up to 68 months of pay to staff but the one-off payment was rejected by workers.
The Taoyuan union said Micron should follow its Korean rivals in adopting a clearer profit-sharing formula.
In May, Samsung Electronics averted a strike by its South Korean union over bonuses. Samsung agreed to set aside 10.5% of its chip division’s operating profit for special bonuses, subject to profitability targets.
SK Hynix agreed in 2025 to allocate 10% of annual operating profit to its profit-sharing bonus programme, removing a cap on payouts. REUTERS, AFP