A demand that chipmakers hand over a fixed share of operating profit as bonuses — the practice at Samsung Electronics (005930) and SK hynix (000660) — has erupted at Micron's plants in Taiwan. The union at the company's Taichung site reached a deal, but the one in Taoyuan launched a 24-hour strike.
The Taoyuan union began its walkout at 9 a.m. on the 22nd, Taiwan's Central News Agency reported. It is a warning strike: rank-and-file members stayed on the job, with only 11 union officers taking part.
Citing the practice at Samsung Electronics and SK hynix, the union is demanding a permanent system that distributes 15% of operating profit as bonuses each quarter. It argues the way the current bonus scheme is calculated lacks transparency.
In September, Micron offered a compensation package that included a bonus of 1 million Taiwan dollars (about 40 million won) per employee. The union rejected it, saying it stopped short of a formal system. In a strike vote held from the 1st to the 6th, 1,994 of 2,258 members, or 88.3%, voted in favor, securing the right to strike.
The dispute has split along plant lines. The Taichung union, which represents about 12,300 workers, reached an agreement with management on the 21st and withdrew a mediation procedure scheduled for the 22nd. The terms were not disclosed. The Taoyuan union, with roughly 3,000 workers, failed to reach a deal and pressed ahead with the strike.
The Taoyuan union plans to hold another round of talks with management on the 23rd after a membership vote, and says it will encourage rank-and-file participation to widen the strike if the compensation offer falls short. Micron said it respects employees' legal rights and will negotiate in good faith with both unions. Some media outlets reported that Micron has decided to create a quarterly bonus system linked to profits, though the distribution ratio has not been disclosed.
Taiwan Accounts for 50-60% of Output at No. 3 DRAM Maker Micron
Micron ranks third in the global DRAM market with a 23.3% share by revenue, behind Samsung Electronics at 39.4% and SK hynix at 24.9%. Its Taiwan operations are a core base handling 50% to 60% of the company's total output, producing DRAM for artificial intelligence servers and high-bandwidth memory. Micron employs about 15,000 people in Taiwan. The impact on actual production from a strike involving only 11 union officers has not been confirmed.
Securities analysts say Korean chipmakers could benefit if the Micron strike drags on while memory supply remains tight. Industry officials in Korea cautioned against reading too much into it, noting the walkout is only partial and the effect will be minimal.
Taichung has settled; Taoyuan has not. Whether the renewed talks on the 23rd produce a concrete proposal on the demand for 15% of operating profit is expected to determine where the dispute goes next.