Micron Offers Record Bonuses to Taiwan Staff to Avert Strike Risk to AI Chip Supply

Micron Technology (NASDAQ: MU) has offered its Taiwan-based employees a record bonus package in an effort to head off a potential strike that threatens to disrupt the global supply of critical memory chips for the artificial intelligence sector. The proposal, announced Friday, comes amid tense negotiations with unions representing a majority of its local workforce.

Details of the Offer

Micron's offer for fiscal 2026 includes bonus payouts ranging from 35 to 68 months of salary, with a guaranteed minimum cash payment of NT$1.7 million (approximately US$53,809), according to a Reuters report. The package also features a one-time cash appreciation bonus of NT$1 million (US$31,652) for every employee in Taiwan who joined before August 29, 2025, as reported by Focus Taiwan.

The company framed the compensation as a reward for record performance, after posting a 346% year-over-year increase in fiscal Q3 2026 revenue to US$41.46 billion. Micron stated the bonus program would cover its more than 60,000 employees worldwide, calling it the largest in its history.

High Stakes for Global Tech

Taiwan is a critical hub for Micron, accounting for approximately 60% of its global production capacity. This includes the high-bandwidth memory (HBM) chips that are essential components in AI servers used by major technology firms like Nvidia, Google, and Microsoft. Any production halt at its Taoyuan and Taichung facilities would create significant disruptions in the global DRAM and HBM supply chains, representing a material risk for the company and its customers.

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For investors, the financial impact of the bonus is substantial. Based on Micron's roughly 15,000 workers in Taiwan, the NT$1.7 million minimum payout alone implies a floor cost of at least NT$25.5 billion (approximately US$808 million), not including equity grants or larger bonuses for more senior staff.

Union Standoff Continues

Despite the scale of the offer, it has not yet resolved the dispute. Unions representing about two-thirds of Micron's Taiwan workforce are demanding a one-time bonus equivalent to 83 months of salary, according to Yahoo Finance. They are also pushing for a structural change: an institutionalized profit-sharing plan set at 15% of operating profit beginning in fiscal 2027.

The unions argue that Micron's current incentive plan is less transparent and provides lower payouts than systems at competitors Samsung and SK Hynix. A first round of mediation on September 4 failed to produce an agreement. A second session is scheduled for September 21, just ahead of the company's annual compensation adjustments on October 1, leaving a narrow window to avert industrial action.