Micron faces Taiwan strike threat over 15% profit-sharing demand

Micron Technology is preparing for possible labor disruption in Taiwan after government-mediated talks broke down on September 21, 2026. The facilities in Taiwan account for 50% to 60% of the company's global memory production capacity, where it employs roughly 15,000 workers. The Taoyuan and Taichung labor unions collectively represent 80% of this local workforce and previously saw 80% of surveyed members support strike authorization in August 2026.

The dispute centers on employee compensation following recent financial gains. The unions are demanding a permanent 15% profit-sharing plan tied to operating profit, alongside a one-time bonus equal to 83 months of base salary. By comparison, rival SK Hynix committed 10% of operating profit to employee bonuses for fiscal 2025, while Samsung committed 10.5% of its chip division operating profit.

Micron offered total rewards for direct production workers ranging from 35 to 68 months of base salary for fiscal 2026. Its proposal includes a guaranteed minimum cash compensation of 1.7 million New Taiwan dollars, or 53,200 dollars, per employee. The plan also features a flat cash bonus of 1.0 million New Taiwan dollars for staff hired on or before August 29, 2025, alongside projected average compensation of 3.4 million New Taiwan dollars for entry-level engineers, which includes 2.9 million New Taiwan dollars in cash. Globally, Micron has 60,000 workers eligible for its fiscal 2026 reward plan.

The labor standoff follows strong financial results. In the third quarter of fiscal 2026, Micron reported GAAP revenue of 41.46 billion dollars, GAAP net income of 28.24 billion dollars, and operating cash flow of 25.39 billion dollars. For the fourth quarter, Wall Street consensus estimates project revenue of 50.62 billion dollars and earnings per share of 31.30 dollars, while Stifel analyst Brian Chin forecasts revenue of 50.78 billion dollars.