Why are Micron's Taiwan workers rejecting up to 68 months bonuses & even threatening a strike?

Taiwanese workers at U.S. chipmaker Micron have rejected a reward package announced on Sep. 11, 2026, demanding a long-term profit-sharing mechanism instead of a one-time cash payout. The package would have seen employees receive bonuses equating to 35 to 68 months of salary, with a minimum cash compensation of NT$1.7 million (approximately S$68,000).

The Taiwan workers' union has called for 15% of the company's operating profits to be allocated to employees, rather than a one-off payout. Micron Taiwan's union leader, Lin, believes the company may be attempting to sway public opinion through the announcement. The union is not interested in a one-time payout but wants a fair and long-term system for distributing profits.

Despite the union's demand raised on Sep. 4, Micron stated it could only decide after consulting its board in October, making the reward announcement surprising. Two rounds of negotiations are scheduled for Sep. 18 and 21. If the company persists in attempting to influence the negotiations, the union threatens to declare talks have broken down and hold a vote among members on whether to strike.

The reward package announcement follows the union's support for a strike, revealed through Taiwan's largest memory chip production base, which accounts for about 60% of Micron's total production capacity. Industry sources suggest a strike at Micron Taiwan could worsen the supply-demand imbalance caused by strong demand, particularly in artificial intelligence.

Micron assured it would listen to its employees and engage in the mediation process in good faith. Workers eligible for payouts under the reward package include operators, technicians, and shift engineers. Entry-level engineers are expected to receive rewards averaging NT$3.4 million (around S$136,200), including an average of NT$2.9 million (approximately S$116,170) in cash compensation.