Workers at Micron Technology’s Taoyuan site in Taiwan voted 99% to authorize a strike over employee bonuses and profit-sharing, setting up a planned walkout on Thursday, October 22, 2026. The labor escalation challenges the US semiconductor maker as global demand surges for memory chips used in artificial intelligence infrastructure.
Labor tensions at Micron Technology have reached a critical juncture in Taiwan, where a union representing workers at the company’s Taoyuan operations prepared to launch a strike. On October 7, 1,994 members of the Taoyuan site union voted to authorize the industrial action, representing 99% of the ballots cast, with only 14 votes against. The dispute centers on employee compensation and demands for a permanent mechanism to distribute company profits. While base salaries are not the core issue, workers want a structured system that allocates 15% of Micron’s operating profit to quarterly employee bonuses, a model similar to those used by South Korean rivals Samsung and SK Hynix.
Mediation Collapse and the Push for Profit-Sharing
The strike authorization followed the breakdown of mediation between Micron and the Taoyuan union in September. In an August poll, over 80% of participating union members already backed strike action. The Taoyuan union stated the action would coincide with a mediation meeting between Micron and the Taichung union to increase pressure on the company to present a concrete proposal for sharing profits.
Through our actions, we will make our dissatisfaction with the current system heard and demonstrate our determination to establish a fair profit-sharing system.
the Taoyuan union
Micron attempted to ease tensions independently of the union’s demands. In September, CEO Sanjay Mehrotra noted in prepared remarks for an earnings call that the firm had raised fiscal 2026 incentive pay for employees worldwide. Local reporting indicated that Micron introduced a rewards package worth between 35 and 68 months of pay for its roughly 15,000 employees in Taiwan, which included a cash bonus of 1 million Taiwan dollars for local staff. Yet mediation between Micron and the Taoyuan union ended without a deal. While Micron maintains that its rewards package is separate from the ongoing dispute, the company has stated it takes employees’ concerns seriously.
Operations at Risk in Micron’s Manufacturing Hub
The labor dispute threatens a crucial manufacturing base for the semiconductor giant. Taiwan houses a majority of Micron’s dynamic random-access memory (DRAM) output, which formed the bulk of the company’s business. Micron’s DRAM revenue reached a record $39.8 billion in the fiscal fourth quarter, marking a 27% increase from the previous quarter and a 343% year-over-year surge, accounting for 73% of total revenue. Taiwan held $27.6 billion of Micron's long-lived assets, mostly plants and equipment, at the end of fiscal 2026.
The company employs approximately 15,000 people in Taiwan and has invested more than T$1.6 trillion, or about $49 billion, on the island. At the opening of a new Taichung assembly and testing facility last week, the company confirmed that the plant’s 2027 capacity was already sold out.
Regarding the market impact, retail investors on Stocktwits expressed concern that stocks might remain red until the strikes conclude, though some viewed the dip as a buying opportunity.
President Lai Urges Micron and Workers to Negotiate
External pressure has mounted from Taiwanese leadership. President Lai Ching-te called on both Micron and its workers to negotiate sincerely during the opening ceremony of Micron’s new plant in Taichung. The strike set for Thursday, October 22, 2026, also serves to demonstrate solidarity with a separate union representing workers at the Taichung facility. The Taichung union has not yet held a strike vote, but if the mediation meeting on October 22 fails, it could ask members to vote on industrial action.
