- Taiwan union keeps possible strike preparations in place over profit-sharing demand
- Dispute threatens Micron's largest manufacturing base amid tight memory-chip supply
- Workers seek a permanent system allocating 15% of operating profit to employees
- Micron's new Taiwan cash award fails to resolve compensation dispute
- Any prolonged production stoppage could worsen DRAM and AI-memory constraints
TAIPEI, Sept 15 (Reuters) - A Taiwanese union representing workers at Micron Technology warned on Tuesday it could move towards a strike unless the U.S. memory chipmaker agrees to a permanent profit-sharing system, escalating a labour dispute at its largest manufacturing hub.
Taiwan is a crucial production centre for Micron's DRAM and high-bandwidth memory (HBM) chips, key components in AI servers. While no strike has been called and there has been no impact on production, any labour action could amplify supply concerns in an already tight memory chip market.
The dispute underscores growing pressure on memory chipmakers to share the windfall from the AI boom. Micron's Taiwan unions have pointed to South Korean rivals Samsung Electronics and SK Hynix, which have profit-sharing schemes for employees, in pressing their demands.
The union said it was seeking a long-term, transparent and verifiable profit-sharing system rather than one-off rewards, reiterating its demand that 15% of Micron's operating profit be allocated to employees globally.
"If there is no concrete proposal on September 18 and 21 and employees feel the company is simply dragging out the process, we will declare the negotiations have broken down and move towards a strike vote," said Jerry Lin, chairman of a union representing workers at Micron's operations in the northwestern city of Taoyuan.
Micron last week announced fiscal 2026 rewards for more than 60,000 employees globally following what it described as an "extraordinary year" for the company. Under the scheme, employees in Taiwan who joined before August 29, 2025 will receive a T$1 million ($31,498) cash bonus, while those who joined later will receive a prorated amount.
The union said the new rewards did not address its demand for a permanent profit-sharing mechanism and criticised Micron for announcing them while labour mediation was under way without first reaching an agreement with the union.
Micron, which has not linked the fiscal 2026 rewards to the labour dispute in Taiwan, did not directly address the strike threat in an emailed response to Reuters.
"We will continue listening to our team members’ perspectives and remain committed to engaging in the mediation process in good faith," the company said.
Further labour mediation sessions have been scheduled between the company and the Taoyuan union, as well as another representing workers in the central Taiwanese city of Taichung. Together, the unions represent more than 80% of Micron's roughly 15,000 employees in Taiwan, according to the Taoyuan union.
The Taoyuan union also plans to hold an event for workers on Thursday near Micron's facility at the Hwa Ya Technology Park.
($1 = 31.7480 Taiwan dollars)
Reporting by Wen-Yee Lee; Editing by Eduardo Baptista and Shri Navaratnam
Source: Reuters