Other chipmaker unions also preparing for labor disputes over bonuses

The logo of US chipmaker Micron Technology. [Reuters]
The logo of US chipmaker Micron Technology. [Reuters]

The Taiwan union of US chipmaker Micron Technology has demanded that 15 percent of the company's operating profit be distributed to employees as bonuses. Other chipmaker unions watching the dispute are also reportedly preparing for their own labor actions over bonus-related grievances.

Taiwan media including the China Times reported Wednesday that Micron's Taiwan union said Tuesday that the compensation package the US headquarters announced Friday for Taiwan employees amounts to no more than 4 to 5 percent of operating profit. The dispute signals widening labor-management tensions over the demand for an operating-profit-linked bonus.

The two major Micron Taiwan unions, along with the Taoyuan City Industrial Federation and the Electronics Industry Union, visited the American Chamber of Commerce in Taipei on Tuesday. Their calculations showed that the compensation plan disclosed by US headquarters — offering up to 68 months' worth of pay — amounts to no more than 4 to 5 percent of operating profit.

The unions said a one-time cash bonus cannot resolve the underlying issue and demanded that 15 percent of Micron's total operating profit be allocated as employee bonuses. They said establishing an open, transparent and verifiable profit-sharing system is the only reasonable form of compensation.

Wei Yu-ling, secretary-general of the Micron Taiwan union, said the headquarters' compensation plan falls at only 4 to 5 percent of operating profit — far below the levels at Samsung Electronics (10.5 percent) and SK hynix (10 percent) in South Korea.

Lin Zhe-rui, chairman of the Micron Technology Taiwan Wafer Enterprise Union, criticized the company for using the 68-month figure to create the illusion that all employees would receive large payouts. He said the number is simply a sum of salary and bonus items calculated on a monthly base wage of around 30,000 New Taiwan dollars (about $1,280). He said the current incentive pay program, known as IPP, is not equivalent to the reform the union is seeking — a system that distributes 15 percent of operating profit.

Lin said the company must provide answers to the union's demands at mediation sessions scheduled for Thursday and Monday, and urged management not to let employees' trust erode to the point of a strike.

Earlier, Micron said it would pay Taiwan employees a cash bonus of 1 million New Taiwan dollars (about $42,500) along with a separate stock award.

In a statement Friday, Micron headquarters said the combined cash and stock compensation for entry-level engineers in Taiwan would average 3.4 million New Taiwan dollars (about $145,000) for fiscal year 2026 (September 2025 through August 2026), Bloomberg reported.

Micron's net profit jumped 15-fold year-on-year in the third quarter of fiscal year 2026 (March through May), and its share price has risen more than 500 percent over the past year. The company currently employs about 15,000 workers in Taiwan, its key production hub.


yckim6452@heraldcorp.com