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The Economic Times
The Economic Times

Micron's Taiwan unions threaten strike over bonus dispute

Micron Technology's labour unions in Taiwan representing ​two-thirds of its workers ​said they were moving toward a possible strike ​unless the US memory-chip maker agrees to overhaul its bonus system and adequately share its profits.

The two unions representing Micron workers in Taoyuan and Taichung said ‌in a ⁠written response ⁠to Reuters that they had close to 10,000 members among roughly 15,000 workers ​at Micron facilities in the two cities. More than 80% of members who ​took part in an internal online survey in August backed strike action, they said.

Micron's Taiwan office said in response to a request ​for comment from Reuters that this year's ⁠performance-bonus payout ‌would be the highest in the company's history.

It ​said it ​would continue dialogue with employees through existing channels ⁠while respecting applicable legal processes.

The strike threat comes as ​booming demand for memory chips used in artificial-intelligence ​hardware has tightened global supply and lifted profits across the sector.

A work stoppage at Micron, the world's third-largest memory-chip maker, would be highly disruptive as Taiwan is the company's largest manufacturing base globally, according to authorities in Taipei, who say Micron has invested ‌NT$1.4 trillion ($43.9 billion) in the island and produces DRAM and high-bandwidth memory chips there.

The dispute echoes a showdown ​at Samsung ​Electronics in South ⁠Korea, where a planned 18-day strike by as many as 48,000 union members was called off in May after last-minute negotiations.

That deal created ​a special bonus pool worth 10.5% of the chip division's operating profit, subject to profitability targets.

Micron's Taiwanese unions said profit-sharing arrangements at Samsung and SK Hynix had widened the gap between Micron workers and their South Korean peers.

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