Micron’s memory chip business has grown quickly, sending its stock much higher over the past year. Now, the company’s employees in Taiwan want a bigger share of those profits.
Workers at Micron’s Taiwan sites may go on strike if the company does not agree to a profit-sharing plan similar to what SK Hynix and Samsung Electronics offer, according to Reuters and local Taiwanese media.
Micron did not respond right away to requests for comment. The company’s shares dropped slightly in premarket trading on Tuesday.
Micron is based in Idaho, but much of its manufacturing happens in Taiwan. A strike there could disrupt operations, though mediation would be required first under Taiwanese labor law. Recent examples suggest Micron may need to make some concessions. Earlier this year, Samsung avoided a strike in South Korea by creating a new bonus pool for its semiconductor workers, paid in stock and tied to the division’s operating profit. SK Hynix is still negotiating with its unions after promising to share part of its annual operating profit as bonuses.
Like most labor talks, these demands are just a starting point. According to Reuters, Micron’s union in Taiwan wants to replace the current incentive plan with a new one that would give 15% of operating profit to employee bonuses starting in fiscal 2027. Micron says this year’s performance bonus is already set to be the biggest in its history.
This dispute probably will not affect Micron’s shares right away, since many details still need to be worked out. However, higher labor costs add to Micron’s growing financial commitments, including its plan to invest $250 billion in U.S. manufacturing by 2035. Even though profits are strong, it is clear that not all of that value will go to shareholders.
