Micron Taiwan strike: Taoyuan union walks out after rival deal over AI bonuses
A union at Micron's Taoyuan memory-chip plant held a 24-hour strike over profit-sharing, a day after the US chipmaker signed a separate deal with its bigger Taichung union; output was not affected.
At a glance
- Union officials at Micron's plant in Taoyuan, Taiwan, held a 24-hour strike from 9am Thursday, October 22, to 9am Friday, October 23, 2026, over bonuses and profit-sharing.
- Only a handful of people walked out — 11 union officials, with about five picketing outside — though more than 2,000 workers had been expected; no production disruption was reported.
- The day before, Micron signed a deal with its much larger Taichung union, including a new quarterly profit-sharing bonus and higher pension contributions, but kept the terms largely confidential.
- The Taoyuan union wants 15% of operating profit shared with staff every year and says it was shut out of the Taichung talks; negotiations resume at 1pm Friday at the Taoyuan city government.
A union at Micron Technology's memory-chip plant in Taoyuan, Taiwan, staged a 24-hour strike from 9am on Thursday, October 22, 2026, demanding a bigger share of the US chipmaker's AI-driven profits. The walkout was small and symbolic — a group of union officials rather than the thousands of workers once expected — and came a day after Micron signed a separate agreement with its much larger union in Taichung, which the Taoyuan union says left it out.
What happened
Eleven Taoyuan union officials stopped work for the full 24 hours, ending at 9am on Friday, and about five picketed outside the plant while the company held a meeting with hundreds of other employees. More than 2,000 people had been expected to join when the strike was first announced. No disruption to production was reported, and the union said that was not its aim.
| Item | Detail |
|---|---|
| Strike | 9am Thu Oct 22 → 9am Fri Oct 23, 2026 |
| Who | Taoyuan union officials (11), about 5 picketing |
| Taoyuan site | About 3,000 workers; 2,335 union members |
| Taichung site | About 12,300 workers; about 11,000 union members |
| Strike vote (Oct 7) | 1,994 of 2,012 voting members in favour (about 99%) |
| Union demand | 15% of operating profit shared with staff, paid quarterly; clearer incentive pay plan |
| Earlier demand | One-off bonus of 83 months' salary (Micron offered up to 68) |
| Next talks | 1pm Fri Oct 23, Taoyuan City Government |
The Taichung deal
On Wednesday, Micron and the Taichung union announced a signed labour-management agreement and pulled out of government mediation. Micron Taiwan chairman Lu Dong-hui later described its main points:
- a new quarterly profit-sharing bonus linked to earnings, on top of the existing incentive pay plan;
- further structural pay rises and higher shift allowances;
- three extra days of paid leave;
- employer pension contributions raised from 8% to 10%.
The company said a confidentiality agreement stops it from revealing more. Taoyuan union chairman Jerry Lin said his representatives were not properly included in the talks and that, had they voted, there would have been no majority for the deal. A regional union leader called the agreement shocking and accused the labour ministry of helping the company divide workers.
Reactions
Lu called the strike regrettable but said Micron respected the action, praised the union's restraint and would keep talking until both sides reached an acceptable outcome. Lin urged Micron to put a concrete offer on the table rather than "hide behind" confidentiality. Union official Wei Yu-ling warned that more workers could join future action if no sincere proposal is made. Taiwan's labour ministry said it respects the right to strike and will keep facilitating talks; President Lai Ching-te had earlier urged both sides to negotiate sincerely.
Background
Demand for memory chips used in AI data centres has sent Micron's revenue and profit to records, and workers across the industry want a bigger cut. In South Korea, Samsung Electronics averted a strike this year by agreeing to pay chip staff bonuses equal to 10.5% of operating profit. Micron makes roughly 50–60% of its chips in Taiwan, including high-bandwidth memory for AI servers, so even a small dispute there is watched closely by customers and investors. Micron shares fell about 6% on Thursday as US chip stocks sold off.
Why it matters
Taiwan is the centre of the world's advanced chip supply, and labour disputes at its fabs have been rare. A wider strike at Micron could tighten supplies of the memory used in AI servers, phones and PCs, where prices are already high. For buyers in South Asia, including Pakistan's growing IT and data-centre sector, any squeeze in memory supply feeds through to the cost of servers and devices.
What happens next
Talks between Micron and the Taoyuan union resume at 1pm on Friday, October 23, at the Taoyuan city government. Union members are also due to vote on the terms Micron presented at Thursday's staff meeting. The union says it has not given up and could call a larger strike if talks fail.
Questions people are asking
Why are Micron workers striking in Taiwan?
Workers at Micron's Taoyuan plant want a larger, permanent share of the company's record AI-driven profits, including 15% of operating profit paid out as bonuses and more transparency in its incentive pay plan. They also object to a deal Micron signed only with its Taichung union.
Did the Micron strike affect chip production?
No production disruption was reported. Only a small group of union officials took part in the 24-hour strike on October 22–23, 2026, and the union said it did not aim to disrupt output, though it warned more workers could join later.
How much of Micron's production is in Taiwan?
Micron makes roughly half to 60% of its memory chips in Taiwan, including DRAM and high-bandwidth memory used in AI servers, at its sites in Taichung and Taoyuan.
