Micron's Taiwan Plant Faces Oct. 22 Strike Over Profit-Sharing Dispute

A view of Micron's newly opened AATT2 advanced assembly and test facility in Taichung, Taiwan, on Oct. 15, 2026. (Yonhap) Micron Technology's production operations in Taiwan face the risk of disruption amid a labor dispute over performance bonuses. The union has cited compensation practices at South Korean semiconductor companies in demanding a permanent system that distributes a fixed share of operating profit to employees. According to Reuters and Taiwanese media reports on Oct. 21, the union at Micron's Taoyuan plant plans to stage a one-day warning strike on Oct. 22. The action is timed to coincide with a second mediation session between Micron management and the Taichung plant union, aiming to pressure the company while showing solidarity with workers in Taichung. The Taoyuan union has secured authorization for the strike after 88.3% of voting members supported the action. The dispute stems from dissatisfaction with the company's bonus structure. Micron proposed a compensation package equivalent to 35 to 68 months of base salary last month, but the union rejected it. Instead, workers are demanding a one-time bonus equivalent to 83 months of pay, alongside a long-term profit-sharing system that would allocate 15% of the company's operating profit to employees. To support its demands, the union cited performance bonus arrangements at Samsung Electronics and SK hynix. Samsung Electronics agreed this year to allocate 10.5% of its semiconductor division's operating profit to a special bonus fund, while SK hynix operates a system that sets aside 10% of annual operating profit for employee bonuses. The Taiwanese union is pressing Micron to establish a transparent, standardized compensation system comparable to those of its global competitors. The Taoyuan plant, where the strike is planned, accounts for approximately 22% of Micron's total DRAM production capacity. Taiwan is a strategic manufacturing hub responsible for 50% to 60% of Micron's semiconductor output, employing around 15,000 people. A key concern for the industry is whether the dispute could spread to the Taichung plant, a major production base for high-bandwidth memory (HBM) used in artificial intelligence (AI) servers. The Taichung union remains in negotiations with management and has not yet held a strike authorization vote. However, the unions at the Taoyuan and Taichung facilities together represent more than 80% of Micron's local workforce. A prolonged dispute or escalation into a broader strike could therefore significantly disrupt global memory supply chains. Market analysts suggest that production disruptions at Micron could create opportunities for South Korean semiconductor companies. With memory supply already tight, delays in Micron's shipments could further strengthen Samsung Electronics' and SK hynix's pricing power and bargaining position in supply negotiations. Kim Dong-won, head of research at KB Securities, said in a report that growing supply uncertainty could encourage customers to secure inventory in advance. He added that any actual disruption to Micron's production could benefit the profitability of Samsung Electronics and SK hynix. Micron has maintained that it will continue constructive discussions with the union. A company representative told Taiwan's Central News Agency that it respects employees' rights and relevant procedures and will work toward a solution acceptable to all parties. The outcome of the Oct. 22 mediation session with the Taichung union is expected to be a turning point in the dispute. 비지니스코리아 businesskorea (Businesskorea)