Micron offers record compensation, but Taiwan union rejects it — threatens strike unless 15% of operating profit shared

Micron Technology, the American memory chipmaker, has unveiled what it calls the most generous compensation package in its history — but its Taiwan union is pushing back, demanding that performance bonuses be tied to operating profit the way they are at Samsung Electronics and SK hynix. The union is calling for a permanent profit-sharing system funded by 15 percent of operating profit, and has signaled it could call a strike if the company does not change course.

Micron announced its fiscal year 2026 performance compensation plan on Friday to roughly 60,000 employees worldwide.

Taiwan employees who joined the company before Aug. 29, 2025 will receive a special cash appreciation bonus of NT$1 million (about 42.4 million won), with those hired after that date receiving a prorated amount based on their tenure. The package also includes annual performance bonuses and restricted stock units (RSUs) that vest over time.

According to the company, total fiscal year 2026 compensation for Taiwan production workers will equal 35 to 68 months of base salary. Entry-level engineers stand to receive an average of NT$2.9 million (about 123 million won) in cash, or NT$3.4 million (about 144 million won) when RSUs are included.

The union held a press conference at the American Chamber of Commerce on Tuesday, rejecting the offer. "We do not want a one-time bonus," the union said, criticizing the company's proposal. It argued that Micron's total payout amounts to only about 4.4 percent of operating profit, and called on the company to restructure its compensation along the lines of what it called "Samsunix" — a portmanteau of Samsung Electronics and SK hynix — by fixing performance pay at 15 percent of operating profit under a formal profit-sharing system.

The union also pushed back on the company's framing of the package as worth "up to 68 months" of pay, arguing the figure was inflated. It said the calculation was based on lower-wage workers earning just over NT$30,000 (about 1.29 million won) a month and lumped together base salary, cash bonuses and RSUs — making the actual benefit appear far larger than it is.

The union warned that if the company fails to provide a concrete response at mediation sessions scheduled for Friday and Monday, it will declare negotiations broken down and begin the process of holding a strike authorization vote. With more than 80 percent of workers at Micron's Taoyuan and Taichung facilities reported to be union members, a strike could meaningfully disrupt production.

Taiwan's authorities are closely monitoring the dispute. The island's Ministry of Labor said it is tracking the situation and is in close contact with the Taoyuan and Taichung city governments and the Central Taiwan Science Park Administration.

The park administration said earlier that while it respects the union's right to pursue its demands, a strike "would not only affect employees' livelihoods and company operations, but could also impact the supply chain of Taiwan's semiconductor industry and the broader economy," urging both sides to find common ground through dialogue.

The administration said it will maintain contact with both labor and management and is prepared to facilitate negotiations or mediation proceedings if needed.