Taipei: The Micron Taiwan workers' union has turned down a reward package proposed by U.S.-based Micron Technology Inc., seeking instead a long-term profit-sharing mechanism that allocates 15 percent of the company's operating profits to employees.
According to Focus Taiwan, union head Lin Che-jui expressed that the proposal was introduced unilaterally by the employer, without reaching a mutual agreement with the union. Lin suggested that Micron's move might be an attempt to sway public opinion.
The reward package, announced by Micron on September 11, promised employees in Taiwan compensation equivalent to 35-68 months' pay for fiscal 2026. This announcement followed threats of a strike by the union. Under the proposed compensation program, Taiwanese employees would receive at least NT$1.7 million (US$53,459) in cash for fiscal 2026, with entry-level engineers expected to receive an average of NT$2.9 million, including stock rewards. The average total compensation was projected to reach NT$3.4 million.
Lin emphasized the union's preference for a sustainable and equitable profit-distribution system. He called on Micron to implement a transparent and verifiable mechanism to share 15 percent of its operating profits with employees. The possibility of a strike hinges on the outcomes of two forthcoming negotiation rounds scheduled for Friday and September 21.
The demand for memory chips has surged globally due to the artificial intelligence (AI) boom, causing supply shortages and increasing prices. This trend has led to record sales and profits for companies like Micron, Samsung Electronics Co., and SK hynix Inc. Despite this, Micron workers in Taiwan have voiced their dissatisfaction with previous bonuses, with some contemplating strike action.
International news reports indicate that Taiwan is Micron's largest memory chip production site, responsible for approximately 60 percent of its total production capacity, primarily producing DRAM and high-bandwidth memory chips. Industry insiders warn that a strike at Micron Taiwan could further strain supplies and worsen the current supply-demand imbalance amid the AI boom.
In response, Micron affirmed its commitment to engaging with employees and participating in the mediation process sincerely. The company stated that its reward package aims to enable all employees to partake in its successes. Micron employs around 15,000 people in Taiwan and has invested over NT$1.6 trillion in the country.
As the world's third-largest memory chip supplier, Micron reported record sales of US$41.46 billion and a net income of US$28.24 billion in its fiscal third quarter ending May 28, driven by a supply shortage that heightened memory chip prices.