Workers at a Taiwan plant of the memory and storage giant Micron Technology plan to launch a strike on Thursday as they aim to pressure the U.S. company into proposing a "concrete profit-sharing plan," a labor union representing the employees said.
Huge global appetite for chips used in AI data centers has sent revenues soaring for firms that design, produce and assemble them but as their earnings skyrocket, workers are demanding a bigger cut of profits.
Monday's announcement came as Micron held talks over remuneration with two unions representing 12,000 of the 15,000 workers at its Taoyuan and Taichung plants.
The union representing hundreds of workers in Taoyuan said Thursday's strike would coincide with mediation talks with the company. It did not specify how long the strike could last.
"The strike aims to strengthen the union's position in mediation and urge Micron to put forward a concrete profit-sharing plan," the union said in a statement.
"We call on all Micron Taiwan Union members to stand together, fight together, and negotiate collectively," the union said.
"Through our actions, we will make our dissatisfaction with the current system heard and demonstrate our determination to establish a fair profit-sharing system."
Micron said it would issue a statement in response to the strike action later.
The workers have the legal right to strike and stage picket lines after voting earlier this month in favour of action, the union said previously.
The unions are seeking a one-off bonus of 83 months' salary as well as a permanent system that allocates 15% of the company's operating profits to worker bonuses, distributed quarterly rather than annually.
Micron, which makes around 50% to 60% of its chips in Taiwan, said last month it would give the equivalent of up to 68 months of pay to staff, but the one-off payment was rejected by workers.