Micron Technology, Inc. (NASDAQ:MU) reportedly said direct-labor employees in Taiwan will receive fiscal 2026 rewards worth 35 to 68 months of pay after what it called an "extraordinary year," but the record payout has not yet ended a labor dispute that could still lead to a strike.
Micron Unveils Its Biggest Taiwan Rewards
Reuters reported Friday that operators, technicians and shift engineers will receive minimum cash compensation of T$1.7 million, or about $53,800. Eligible Taiwan employees hired before Aug. 29, 2025, will also receive a T$1 million (approximately $31,600) cash bonus. More than 60,000 Micron employees globally will receive fiscal 2026 rewards.
Entry-level engineers in Taiwan will average T$3.4 million (approximately $107,450) in total rewards, including roughly T$2.9 million (approximately $91,650) in cash, with the remainder in equity at grant value. Every employee will also receive an annual equity grant, Reuters reported.
The payouts follow a dramatic earnings surge. Micron reported record fiscal third-quarter revenue of $41.46 billion, up from $9.30 billion a year earlier, while net income jumped to $28.24 billion. CEO Sanjay Mehrotra said the results reflected "the strategic value of memory in the AI era."
Strike Threat Persists Despite Record Bonuses
That AI-driven boom has also intensified worker demands. Taiwan unions representing nearly 10,000 of Micron’s roughly 15,000 employees said more than 80% of surveyed members backed strike action. They previously sought an additional payment equivalent to roughly 83 months of salary and want future bonuses tied to 15% of operating profit.
The dispute, which has already drawn attention as a potential supply-chain risk for Micron investors, remains unresolved after the company and its Taoyuan union failed to reach an agreement during mediation. A second round is scheduled, Reuters said.
Korean Rivals Raise Profit-Sharing Expectations
Workers have pointed to South Korean rivals for comparison. Samsung Electronics Co. Ltd. (OTC:SSNLF) narrowly avoided an 18-day strike involving as many as 48,000 workers in May after agreeing to a special bonus pool equal to 10.5% of its chip division’s operating profit, subject to profitability targets. The threatened Samsung walkout had raised concerns over global chip supply.
SK Hynix Inc. (NASDAQ:SKHY) went further, agreeing last year to share 10% of annual operating profit with workers. Reuters calculates that formula could produce average 2026 bonuses of about 779 million won, or roughly $547,000 per employee. A preliminary deal would pay 40% in cash and 60% in stock.
Micron has invested more than T$1.6 trillion (approximately $50 billion) in Taiwan, making the island one of its most important manufacturing hubs and raising the stakes if the compensation dispute escalates.
Price Action: Micron Technology shares were up 0.99% at $987.10 during after-hours trading on Thursday.
Benzinga Edge rankings indicate Micron’s stock has a Momentum score in the 99th percentile and a Growth score in the 93rd percentile.
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