Micron (MU.US) AI dividend distribution escalates in battle? Taiwan trade unions threaten strike, HBM supply may sound alarm

The Zhitong Finance App learned that a Taiwanese trade union representing Micron Technology (MU.US) employees warned on Tuesday that unless the US memory chip manufacturer agrees to establish a permanent profit sharing system, it may go on strike, further escalating the labor dispute at its largest manufacturing center.

Taiwan is a key production center for Micron DRAM and high-bandwidth memory (HBM) chips, which are the core components of AI servers. Although no strike has been announced and production has not been affected, any labor action could heighten supply concerns in the already tight memory chip market.

The dispute highlights that memory chip makers are under increasing pressure to share the benefits brought about by the AI boom. The Micron Taiwan Trade Union pointed out that South Korean rivals Samsung Electronics and SK Hynix both have employee profit sharing plans to pressure their demands.

The union said it is seeking a long-term, transparent and verifiable profit-sharing system rather than a one-time reward, and reiterated its demand that 15% of Micron's operating profits be distributed to global employees.

“If there is no specific plan on September 18 and 21, and employees feel that the company is just delaying, we will announce the breakdown of negotiations and go to strike and vote.” Trade union chairman Jerry Lin, representing Micron's Taoyuan factory employees, said.

“An Extraordinary Year” and an Extraordinary Bonus

Micron announced last week that it will reward more than 60,000 employees around the world for fiscal year 2026 after experiencing what the company called an “extraordinary year.” According to the plan, Taiwanese employees who joined the workforce before August 29, 2025 will receive a cash bonus of NT$1 million (approximately US$31,498), and those who have joined the workforce will be distributed in proportion thereafter.

According to previous reports, the overall salary of Taiwanese production line employees is equivalent to 35 to 68 months' salary, and the minimum cash compensation is NT$1.7 million. The average total reward for junior engineers was NT$3.4 million, of which about NT$2.9 million in cash, and the rest was calculated based on the equity grant value.

However, the Taoyuan Trade Union, which represents about two-thirds of Taiwan's employees, refused to accept it, insisted that 15% operating profit be included in the bonus distribution, and maintained the threat of strike.

The union said the new rewards did not address its requirements for a permanent profit sharing mechanism, and criticized Micron for announcing these rewards before labor mediation was ongoing and no agreement was reached with the union.

Micron did not link the 2026 fiscal year rewards to Taiwan's labor disputes, nor did it directly respond to the threat of a strike. The company said, “We will continue to listen to team members and are committed to participating in the mediation process in good faith.”

Further labor mediation meetings have been arranged between the company and the Taoyuan Trade Union and another trade union representing employees in Taichung City in central Taiwan. According to the Taoyuan Union, the two unions together represent more than 80% of Micron's 15,000 employees in Taiwan. The Taoyuan Trade Union also plans to hold an event for employees near the factory area of the Micron Huaya Science Park on Thursday.