Micron Taiwan union authorizes strike over bonus dispute

Micron Technology (MU) union members in Taiwan have authorized a strike over a dispute about the company's bonus scheme, according to media reports. MU stock is down ~2% before the opening bell on Wednesday.

At a time when memory prices have surged and the market faces a supply crunch, a labor action at Micron's key Taiwan operations could affect the market given the country's important role in producing DRAM and high-bandwidth memory or HBM chips. The union represents workers at Micron's operations ​in the northern city of Taoyuan. Of which 1994 members, ⁠or 99% of those casting ballots, voted in favor of a strike. The timing and details of any walkout are still being discussed.

Separate unions represent workers at its Taoyuan and Taichung operations, and together they cover more than 80% of the company's Taiwan workforce.

Mediation between Micron and the Taoyuan union ended without an agreement in September, while talks with the Taichung union are continuing.

The unions are seeking a permanent profit-sharing scheme that would allocate 15% of Micron's operating profit to quarterly bonuses. The Taoyuan union criticized Micron for announcing employee rewards while mediation was underway without reaching an agreement with workers.

Micron said in September it would provide fiscal 2026 rewards to more than 60,000 employees globally, including a T$1M ($31,386) cash bonus for employees in Taiwan.

The labor dispute comes as Micron benefits from strong demand for memory chips tied to artificial intelligence. The company saw its revenue surge 379.1% to $54.23B for its latest quarter. Its reported adjusted earnings came in at $33.42 per share.

MU stock has gained 266% so far this year.

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