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AI Memory Supply at Risk? Taiwan Workers Seek Big Bonus Hike
4 Sep
Summary
- Taiwanese unions seek a one-off bonus of 83 months' salary by fiscal 2026.
- Workers demand quarterly bonuses equal to 15% of operating profit from fiscal 2027.
- A strike vote could occur this month if mediation efforts fail.
Micron Technology's labor unions in Taiwan are escalating demands for bonus overhauls, with a potential strike looming. Unions representing approximately 10,000 workers are pushing for substantial changes to their compensation structure.
For fiscal 2026, the unions have proposed a one-off bonus of about 83 months' salary per employee. Beginning in fiscal 2027, they aim to replace the current incentive plan with a system awarding 15% of operating profit quarterly.
These demands come as Micron experiences a surge in AI-driven memory demand. A formal strike vote could be initiated as early as this month if mediation fails, potentially impacting the supply chain for AI development. The workers cite precedents from competitors Samsung and SK Hynix, whose bonus structures are reportedly higher.
Micron's Taiwan office has indicated that the current year's performance bonus payout will be the company's highest ever, yet it falls short of union expectations, which are based on a precedent of approximately 2.6 months of salary under a capped plan.
