Unions move toward strike threat

Micron Technology's labour unions in Taiwan have said they are moving toward a possible strike unless the S. memory-chip maker agrees to overhaul its bonus system and share profits more adequately. The two unions, representing workers in Taoyuan and Taichung, said in a written response to Reuters that they have close to 10,000 members among roughly 15,000 workers at Micron facilities in the two cities.

More than 80% of members who took part in an internal online survey in August backed strike action, the unions said. The unions have also held a meeting in July to study a strike at Samsung Electronics, according to a report from Reuters that quoted union members.

The dispute centres on Micron's bonus policies, including a reported 200% bonus cap. Workers want the company to overhaul its bonus system and profit-sharing program, echoing demands made by Samsung workers who successfully renegotiated their bonus caps and the percentage of operating profit received as bonuses.

Micron's response

Micron's Taiwan office said in response to a request for comment from Reuters that this year's performance-bonus payout would be the highest in the company's history. The company said it would continue dialogue with employees through existing channels while respecting applicable legal processes.

The strike threat comes as booming demand for memory chips used in artificial-intelligence hardware has tightened global supply and lifted profits across the sector. A work stoppage at Micron, the world's third-largest memory-chip maker, would be highly disruptive as Taiwan is the company's largest manufacturing base globally, according to authorities in Taipei, who say Micron has invested NT$1.4 trillion ($43.9 billion) in the island and produces DRAM and high-bandwidth memory chips there.

Samsung and SK Hynix comparisons

The dispute echoes a showdown at Samsung Electronics in South Korea, where a planned 18-day strike by as many as 48,000 union members was called off in May after last-minute negotiations. That deal created a special bonus pool worth 10.5% of the chip division's operating profit, subject to profitability targets.

Micron's Taiwanese unions said profit-sharing arrangements at Samsung and SK Hynix had widened the gap between Micron workers and their South Korean peers. The unions' move follows a period of heightened labour activity in the memory-chip sector, with workers in South Korea pressing for a greater share of the industry's recent windfall from AI-driven demand.