Micron (MU) Stock Falls as Taiwan Workers Threaten Strike Over Bonus Pay
TLDR
- Micron’s Taiwan unions, representing nearly 10,000 workers, are threatening strike action over bonus pay disputes.
- Unions want 15% of operating profit allocated to bonuses from fiscal 2027, paid quarterly.
- More than 80% of surveyed union members backed strike action in an August poll.
- Taiwan is Micron’s largest manufacturing base, meaning a strike could disrupt chip supply.
- Micron says this year’s performance bonus will be the highest in company history.
Micron (MU) stock was down 2.4% in Tuesday’s premarket after its Taiwan unions announced they are moving toward possible strike action over a bonus dispute.
The unions represent workers in Taoyuan and Taichung, covering nearly 10,000 of Micron’s roughly 15,000 Taiwan-based employees. Taiwan is Micron’s largest manufacturing base, where it produces DRAM and high-bandwidth memory chips.
More than 80% of union members who took part in an internal survey in August backed strike action, the unions said.
The core of the dispute is how Micron shares its profits. The unions say the current Incentive Pay Plan does not reflect the company’s booming profitability and does not clearly explain how its performance metric is calculated.
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