Micron Taiwan workers threaten strike over profit-sharing demands amid AI boom

Micron faces potential labor disruption at its largest manufacturing base in Taiwan, where unions representing roughly 10,000 of the company's 15,000 Taiwan workforce are pushing for a strike over bonus demands. The unions seek a commitment to set aside 15% of operating profit for quarterly employee bonuses starting fiscal 2027, citing the dramatic surge in Micron's profitability driven by AI memory demand. Taiwan workers also point to more generous arrangements at rivals Samsung and SK Hynix. While Micron said its current-year performance bonus will be the largest in company history, the dispute arrives at a time when the chipmaker's fiscal third-quarter operating income surged to $33.32 billion from $2.17 billion year earlier. Taiwan is Micron's largest manufacturing hub globally, producing both DRAM and high-bandwidth memory critical to AI data centers. Any prolonged supply disruption could tighten an already-constrained memory market where supply lags demand growth.

1. Two unions representing approximately 10,000 of Micron's 15,000 Taiwan workers are backing strike action
2. More than 80% of workers surveyed in August supported a walkout, according to Reuters
3. Unions seek 15% of operating profit set aside for quarterly bonuses from fiscal 2027 onward
4. Samsung committed 10.5% of its chip division operating profit to bonuses; SK Hynix committed 10%
5. Micron's fiscal Q3 operating income surged to $33.32 billion from $2.17 billion year-over-year
6. Taiwan accounts for majority of Micron's 2025 DRAM output and produces high-bandwidth memory for AI
7. Taiwan requires failed mediation and secret ballot before a legal strike can proceed