Micron Technology’s labor dispute with its Taoyuan wafer fab union in Taiwan has reached another impasse. A second mediation meeting hosted by the Taoyuan City Government on Sept. 21 ended without a deal, and the union said it will move ahead with a strike vote under Taiwan’s Act for Settlement of Labor-Management Disputes.
The breakdown came even after Micron rolled out a NT$1 million one-time appreciation bonus per employee and what it called its highest-ever FY2026 compensation package. The Taoyuan union’s core demand, however, has remained unchanged: a formal profit-sharing mechanism.
Bonus plan drew criticism during mediation
Tensions intensified on Sept. 11. After the first mediation meeting on Sept. 4, Micron’s representatives asked to delay the second session by two weeks, citing personal matters involving senior management and the need to consult with the company’s U.S. headquarters.
During that waiting period, Micron announced on its own that employees who joined before Aug. 29, 2025 would receive a one-time NT$1 million appreciation bonus. Newer employees would receive a prorated amount based on seniority. The announcement was made without negotiations with the Taoyuan and Taichung unions, according to the report.
The Taoyuan Federation of Labor Unions sharply criticized the move, saying Micron had bypassed the bargaining mechanism while mediation was still in progress and tried to replace negotiations with a fait accompli. The report said the surprise bonus plan did not calm workers and instead deepened anger, because the union had not been seeking a one-off cash payment in the first place.
No concrete profit-sharing proposal in second session
At the second mediation meeting, Micron still did not present a concrete plan for the profit-sharing system that workers had been asking for. The Taoyuan Federation of Labor Unions said Micron had promised to discuss the issue after the first mediation on Sept. 4, yet returned to the table again without a proposal.
Micron said it had participated in the mediation process in good faith, thanked the Taoyuan City Government for its assistance, and hoped to continue mediation talks with the Taoyuan union.
The Taichung union is on a separate timetable. Its first mediation session was held on Sept. 18, and the second labor dispute mediation meeting is scheduled for Oct. 22.
FY2026 package did not address the union’s main demand
Micron’s FY2026 compensation package included several headline figures:
- Total compensation for production-line employees in Taiwan ranging from 35 to 68 months of salary;
- A starting FY26 cash compensation level of NT$1.7 million;
- Average cash compensation of NT$2.9 million for entry-level engineers;
- Average total compensation of NT$3.4 million after including stock grants;
- An annual performance bonus cap of 500% of base salary.
Even so, the union said the issue was not the size of a bonus package. Its demand is for institutionalized profit sharing, with employee returns directly linked to company profits instead of being determined unilaterally by management in terms of timing and amount.
Strike vote to proceed, talks still possible
After the mediation failed, the Micron Taiwan Taoyuan wafer fab union said union representatives had authorized the board to begin the strike vote process. Members will vote by secret ballot. If more than half support the action, the union would obtain the legal right to strike. Detailed plans are expected to be announced in the coming days.
The Taoyuan union also said the failed mediation does not mean it is refusing further talks. It said Micron still has a chance to engage in what it called 「真正且平等的协商」, or genuine and equal negotiations, with both unions. It also warned that Micron should not challenge Taiwanese workers’ unity or their determination to seek a reasonable share of profits.
ABMedia said Micron is one of the largest foreign multinational companies in Taiwan, and the direction of its labor relations there will affect the rights and protections of thousands of local employees.