Micron's Largest Production Base Faces Strike Threats as Bonus Falls 'Short of Expectations,' Workers Demand Bigger Cut of AI-Driven Profits: Report (UPDATED)

Editor’s Note: This story has been updated to include a comment from a Micron spokesperson. Hundreds of Micron Technology Inc. (NASDAQ:MU) employees rallied in Taiwan on Thursday, threatening to strike after rejecting the company’s fiscal 2026 bonus offer, with workers reportedly saying the offer fell short of expectations. Workers Say the Offer Falls Short Last week, Micron offered total compensation equivalent to 35 to 68 months of pay for the year, with minimum cash compensation of NTD1.7 million ($53,485), but workers at a rally near the Taoyuan plant said it doesn’t reflect the company’s surging earnings, France24 reported, citing Agence France-Presse. An engineer said the offer had “fallen short of expectations” given the company’s recent profit surge, adding that the union hopes to negotiate “through fair and lawful means” to secure the bonus workers feel they’re owed. Another worker said Micron should look at how rivals treat their employees to become “more competitive” in attracting talent. Samsung Electronics Co. Ltd. (OTC:SSNLF) agreed earlier this year to set aside 10.5% of its chip division’s operating profit for bonuses, while SK Hynix Inc. (NASDAQ:SKHY) has committed 10% of its annual operating profit to employee payouts, Reuters reported. Micron said the company and its Micron Memory Taiwan Union met on Sept. 18 to discuss a range of issues, including total rewards, the bonus framework, “no free rider” provisions, and non-retaliation protections, with both sides agreeing to reconvene on Oct. 22. It added that it remains committed to “respectful, constructive engagement” as talks continue. Read Also: Scott Bessent Says Financing Iran With Crypto 'Not Beyond' Treasury's Reach, Sanctions Bitcoin Exchange Tied to Iranian Financier Babak Zanjani A 15% Profit-Sharing Demand The unions are seeking a one-time bonus of 83 months’ salary, along with a permanent system that directs 15% of operating profit to quarterly worker bonuses. Government-mediated talks began in early September, and unions have said they would strike if negotiations collapse. Taiwan Is Central to Micron’s Supply Chain Taiwan is Micron’s largest manufacturing base globally, producing the majority of its DRAM output, and the company has warned in regulatory filings that losing production there could have a material impact on its business. Micron’s fiscal third-quarter revenue surged to $41.46 billion from $9.30 billion a year earlier, with operating income jumping to $33.32 billion, and the company has guided for roughly $50 billion in fourth-quarter revenue. Price Action: The company’s shares have closed 5.5% higher on Thursday at $977.50 and gained 0.56% in extended trading. Year-to-date, shares are up 209.90% and 478.78% over the past year. Benzinga edge rankings indicate Micron’s stock has a Momentum score in the 99th percentile and a Growth score in the 93rd percentile. See More: Top Growth Stocks Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo Courtesy: gguy on Shutterstock.com