Micron Taiwan to distribute record bonuses as union plans strike

Taipei, Sept. 1 (CNA) Micron Taiwan, a subsidiary of U.S. memory chip giant Micron Technology Inc., announced Tuesday that it will distribute record bonuses to its employees as the company's labor union plans a strike amid complaints employee bonuses have been lower than those offered by other memory chipmakers.

In a statement, Micron said it will unveil an Incentive Pay Plan (IPP) in October, providing details of what it described as the company's largest-ever bonus distribution.

Amid the artificial intelligence boom, global demand for memory chips has risen, tightening supplies. Growing demand has pushed up memory chip prices, allowing companies such as Micron and South Korea's Samsung Electronics Co. and SK hynix Inc. to post record sales and profits.

However, workers at Micron and Samsung have expressed dissatisfaction with the bonuses they previously received, with some planning strikes in protest.

In Taiwan, Micron employees at its Taoyuan and Taichung plants recently held a vote, with about 80 percent supporting the union's plan to strike.

At a time when global memory chip supplies have failed to meet robust demand, industry sources said a potential strike at Micron Taiwan could further reduce supplies and exacerbate the existing supply-demand imbalance.

Micron Taiwan said the hard work and contributions of its employees have been an important foundation for the company's success.

Until the IPP is announced, Micron Taiwan said, it will continue to communicate with employees through existing channels, emphasizing that all of its actions will fully comply with the law.