Micron (MU) Stock Dips as Taiwan Workers Prepare to Strike Over Bonuses

TLDR

• Micron faces a potential strike at its Taoyuan plant in Taiwan after profit-sharing mediation failed.
• The union wants 15% of operating profit allocated to quarterly bonuses permanently.
• Micron offered bonuses worth 35 to 68 months of base salary for fiscal 2026, but unions rejected the structure.
• A strike vote is planned for early October; a third mediation with the Taichung union is set for Oct. 22.
• MU stock was down 0.6% at $1,038 in premarket trading Tuesday.

---

Micron Technology is facing potential strike action at one of its key Taiwanese manufacturing plants after profit-sharing talks broke down.

MU stock was trading down 0.6% at $1,038 in premarket trading Tuesday.

Micron Technology, Inc., MU

The union representing workers at Micron’s Taoyuan plant in Taiwan announced Monday it is preparing for a strike vote, expected to take place in early October, after a second round of mediation ended without a deal.

Workers are pushing for a permanent profit-sharing scheme that would allocate 15% of Micron’s operating profit to quarterly bonuses. That demand mirrors arrangements already in place at rivals SK Hynix and Samsung Electronics.

Micron did announce a large bonus package on Sept. 11, describing it as its biggest ever. Taiwan-based employees are eligible to receive bonuses equivalent to between 35 and 68 months of base salary for fiscal year 2026.

But the unions say that’s not the point. They want a structural change, not a one-time arrangement. The Taoyuan union chair, Lin Che-jui, said workers have been raising concerns about the bonus scheme since last year.

During Monday’s mediation, Micron representatives told union leaders it had formulated a new bonus plan but could not disclose details until it receives board approval in early October.

Lin said the company “keeps telling us to believe that the company will come up with a plan that benefits all employees,” adding that workers were told any changes to this year’s plan may have to wait until 2027.

Micron said it participated in mediation in good faith and has requested continued talks with the Taoyuan union.

Who Is at Risk

The Taoyuan and Taichung unions together represent more than 70% of Micron’s roughly 15,000 workers in Taiwan. The Taoyuan union has also reported a sharp rise in membership since April, suggesting growing worker interest in the dispute.

A third mediation session with the Taichung union is scheduled for Oct. 22.

Taiwan is central to Micron’s manufacturing operations. In January, the company signed a letter of intent to purchase another Taiwanese chip-making facility for $1.8 billion.

The Backdrop

Micron has posted strong financial results recently, with revenue growing nearly 50% last year on the back of surging demand for memory chips tied to AI infrastructure buildout.

The Taoyuan union said Monday’s failed mediation does not mark the end of negotiations and that Micron still has an opportunity to come back to the table.

The union’s statement warned that Micron “should not underestimate Taiwanese workers’ determination to seek a fair share of the profits.”

Micron did not respond to a request for comment.