Micron workers reject 68 months’ pay, demand 15% of AI boom profits
Last week, Micron announced total rewards for its Taiwan direct labour team equivalent to 35–68 months of pay for fiscal 2026, including a minimum cash component of NT$1.7 million (about ₹51.11 lakh) per eligible worker.
- Sep 18, 2026,
- Updated Sep 18, 2026 1:35 AM IST
Workers at US memory chip giant Micron Technology in Taiwan have rejected a record bonus package worth up to 68 months of basic salary, saying it fails to address their core demand: a permanent, transparent profit-sharing system linked to the company’s surging AI-driven earnings, as reported by the Taipei Times.
Last week, Micron announced total rewards for its Taiwan direct labour team equivalent to 35–68 months of pay for fiscal 2026, including a minimum cash component of NT$1.7 million (about ₹51.11 lakh) per eligible worker. The offer came after unions representing nearly 10,000 of Micron’s roughly 15,000 employees in Taoyuan and Taichung threatened strike action over what they called an outdated bonus structure.
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However, the Taoyuan-based union rejected the proposal within hours, arguing that the “up to 68 months” figure is misleading because the calculation uses lower-wage benchmarks and assumes that stock awards vest over a long period, making the deal appear more generous than it is. Union leaders said the package amounts to only about 4.4% of Micron’s operating profit, far short of the 15% share they are seeking.
Demand for 15% of operating profit, paid quarterly
Instead of a one-off reward, the union is pushing for a structural overhaul of Micron’s Incentive Pay Plan. Its key demands include:
- A permanent profit-sharing mechanism allocating 15% of Micron’s global operating profit to employees, starting in fiscal 2027.
- Quarterly distribution of bonuses, rather than annual payouts, to better reflect the company’s cyclical profitability.
- A one-time payment for fiscal 2026 equivalent to about 83 months of salary, based on the union’s own calculations.
Union chairman Lin told reporters that the goal is “a long-term, transparent and verifiable profit-sharing system” that gives workers a reasonable share when the company is profitable while providing institutional safeguards during recessions.
Strike vote looms if talks fail
With mediation talks scheduled for September 18 and 21, the union has warned that it will declare negotiations broken and move towards a strike vote if Micron does not present a concrete proposal on profit sharing. The timing is critical for Micron, as Taiwan is a key hub for its DRAM and high-bandwidth memory (HBM) production, which is in high demand for AI infrastructure.
ALSO READ: ‘We Don't Need an AI PC Yet’ is the costliest mistake enterprises are making: Dell’s Jacinta Quah
A potential strike at Micron’s largest manufacturing base could tighten global memory supply just as the AI boom continues to drive record profits. The company reported $28.24 billion (approximately ₹27 lakh crore) in profit in Q3 2026 alone.
Workers at US memory chip giant Micron Technology in Taiwan have rejected a record bonus package worth up to 68 months of basic salary, saying it fails to address their core demand: a permanent, transparent profit-sharing system linked to the company’s surging AI-driven earnings, as reported by the Taipei Times.
Last week, Micron announced total rewards for its Taiwan direct labour team equivalent to 35–68 months of pay for fiscal 2026, including a minimum cash component of NT$1.7 million (about ₹51.11 lakh) per eligible worker. The offer came after unions representing nearly 10,000 of Micron’s roughly 15,000 employees in Taoyuan and Taichung threatened strike action over what they called an outdated bonus structure.
DO CHECKOUT: One meeting, and it was over: 150 Indian techies laid off overnight without severance
However, the Taoyuan-based union rejected the proposal within hours, arguing that the “up to 68 months” figure is misleading because the calculation uses lower-wage benchmarks and assumes that stock awards vest over a long period, making the deal appear more generous than it is. Union leaders said the package amounts to only about 4.4% of Micron’s operating profit, far short of the 15% share they are seeking.
Demand for 15% of operating profit, paid quarterly
Instead of a one-off reward, the union is pushing for a structural overhaul of Micron’s Incentive Pay Plan. Its key demands include:
- A permanent profit-sharing mechanism allocating 15% of Micron’s global operating profit to employees, starting in fiscal 2027.
- Quarterly distribution of bonuses, rather than annual payouts, to better reflect the company’s cyclical profitability.
- A one-time payment for fiscal 2026 equivalent to about 83 months of salary, based on the union’s own calculations.
Union chairman Lin told reporters that the goal is “a long-term, transparent and verifiable profit-sharing system” that gives workers a reasonable share when the company is profitable while providing institutional safeguards during recessions.
Strike vote looms if talks fail
With mediation talks scheduled for September 18 and 21, the union has warned that it will declare negotiations broken and move towards a strike vote if Micron does not present a concrete proposal on profit sharing. The timing is critical for Micron, as Taiwan is a key hub for its DRAM and high-bandwidth memory (HBM) production, which is in high demand for AI infrastructure.
ALSO READ: ‘We Don't Need an AI PC Yet’ is the costliest mistake enterprises are making: Dell’s Jacinta Quah
A potential strike at Micron’s largest manufacturing base could tighten global memory supply just as the AI boom continues to drive record profits. The company reported $28.24 billion (approximately ₹27 lakh crore) in profit in Q3 2026 alone.