Taipei: U.S.-based memory chip supplier Micron Technology Inc. has announced plans to distribute rewards equivalent to 35-68 months' pay to its workers in Taiwan for fiscal 2026 in response to the country's union threats to strike.
According to Focus Taiwan, Micron revealed that these rewards will be given to more than 60,000 employees worldwide, marking the largest distribution in the company's history. This decision comes as a gesture of gratitude following the company's record profits. Micron emphasized that the rewards reflect its long-term commitment to allowing employees to share in its success.
In Taiwan, where Micron employs approximately 15,000 people, the company has invested over NT$1.6 trillion (US$50.47 billion). The announcement of the reward plan followed the Micron Taiwan union's plans to strike due to dissatisfaction with the current bonus policies. Employees have been comparing their bonuses unfavorably with those offered by competitors like Samsung Electronics Co. and SK Hynix Inc.
Under Micron's new compensation program, Taiwanese employees will receive a minimum cash compensation of NT$1.7 million (US$53,628) for fiscal 2026. Entry-level engineers are expected to garner an average total compensation of NT$2.9 million, including stock rewards. The average total compensation is projected to reach NT$3.4 million. Additionally, employees who have been with Micron since August 29, 2025, will receive NT$1 million in bonuses, while new hires in 2026 will receive prorated bonuses.
Micron's announcement follows a statement by Micron Taiwan last week regarding the unveiling of an Incentive Pay Plan (IPP) in October. This plan, described as the company's largest-ever bonus distribution, comes after 80 percent of employees at its Taoyuan and Taichung plants supported the union's strike plan.
Industry sources warn that a potential strike at Micron Taiwan, the company's largest memory chip production base, could further strain global memory chip supplies amid the current AI boom. Micron's Taiwan facilities account for about 60 percent of its total production capacity, primarily producing DRAM and high-bandwidth memory chips.
In its statement, Micron reaffirmed its commitment to supporting talent, innovation, and manufacturing capabilities in Taiwan, enhancing the country's status as a global semiconductor leader. The company, ranked as the world's third largest memory chip supplier, reported record sales of US$41.46 billion and net income of US$28.24 billion in its fiscal third quarter, ending May 28, benefiting from a supply shortage that drove up memory chip prices.