Micron workers want 83 months’ salary, reject company’s 68-month bonus offer as AI boom boosts profits

Hundreds of Micron Technology workers took to the streets in Taiwan on Thursday, rejecting the company’s bonus offer and warning that they could go on strike if talks over pay fail to make progress, Yahoo finance reported on Thursday

The workers, represented by two labour unions, are seeking higher bonuses from the US memory chipmaker as Micron benefits from strong demand for chips used in artificial intelligence data centres.

Micron has offered its Taiwan employees total rewards equivalent to 35 to 68 months of pay for fiscal 2026, with minimum cash compensation of NT$1.7 million (US$53,200). Workers demonstrating at a basketball court across from the company’s Taoyuan plant said the offer was not enough.

The two unions represent nearly 12,000 of Micron’s 15,000 workers at its Taoyuan and Taichung plants. The company produces around 50-60 percent of its chips in Taiwan.

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Workers seek higher bonus

The unions are demanding a one-off bonus equivalent to 83 months’ salary. They are also seeking a permanent system under which 15 percent of the company’s operating profits would be allocated to worker bonuses and distributed quarterly instead of annually.

The unions said they would strike if government-mediated negotiations with Micron management, which began in early September, collapse.

"I feel that this is something we deserve, so we must stand up for it -- not just for ourselves, but also for all workers in Taiwan," said a production technician who joined the union rally after work, identifying herself only as Lin.

Micron last week announced that Taiwan employees would receive "total rewards equivalent to 35 to 68 months of pay, with minimum cash compensation of NT$1.7 million" (US$53,200) for fiscal 2026.

Workers say the proposed bonus does not reflect the company’s strong financial performance or match what they believe employees at rival chipmakers receive.

Tsai, an engineer in his 40s, told AFP that Micron’s offer had "fallen short of expectations" given the huge surge in profits raked in by the company in recent years.

"We naturally hope to negotiate through the union using fair and lawful means to strive for the bonus we deserve," said Tsai, who only provided his family name.

Micron faces competition for workers

Micron employees have also pointed to bonus arrangements at South Korean rivals Samsung Electronics and SK Hynix.

"Micron should look at how industry rivals treat their workers," 49-year-old engineer Ken Wu said.

"Only then will Micron become more competitive and attract more top talent."

The dispute comes as memory chipmakers benefit from a sharp rise in demand linked to AI infrastructure. Memory chips are particularly important for AI data centres and remain in tight supply, helping drive higher revenues across the industry.

In South Korea, Samsung Electronics recently averted a strike after agreeing to a deal to distribute bonuses equivalent to 10.5 percent of operating profit to its semiconductor employees.

Neil Shah, co-founder of Counterpoint Research, said Micron was racing against Samsung and SK hynix for a larger share of the memory chip market.

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"Who has the most capacity will take the most share, because capacity is the constraint right now," Shah said, noting that Micron’s Taiwan workforce is "super important" in maintaining that momentum.

"Micron will have to find a solution," he said, particularly when "Samsung has set an industry standard".

Taiwan remains key to Micron

Micron said more than NT$1.6 trillion has been invested in Taiwan, describing the island as its "critical hub".

The company has also reported record revenues as demand for AI-related technology boosts the memory chip industry. Micron’s revenue reached US$41.5 billion in the three months ending May.

With negotiations continuing, the unions’ demands put pressure on Micron to reach an agreement with workers while it competes with Samsung and SK hynix in a memory-chip market increasingly driven by AI demand.