Micron to give employees rewards worth 35-68 months' pay

Taipei, Sept. 11 (CNA) U.S.-based memory chip supplier Micron Technology Inc. said Friday it will distribute rewards equivalent to 35-68 months' pay to its workers in Taiwan for fiscal 2026 as the company's union in the country has threatened to strike.

In a statement, Micron said the fiscal 2026 rewards will be distributed to more than 60,000 Micron workers worldwide, describing them as the largest in the company's history and a way of thanking employees after the company posted record profits.

The U.S. company said the record rewards demonstrated its long-term commitment to allowing employees to share in its success.

In Taiwan, Micron has a workforce of about 15,000 and has invested more than NT$1.6 trillion (US$50.47 billion) in the country, according to the U.S. memory chip giant.

The record reward plan was unveiled after Micron Taiwan's union announced plans to strike, demanding that the company overhaul its bonus policies amid reported complaints that its bonuses were lower than those offered by other memory chip suppliers such as Samsung Electronics Co. and SK Hynix Inc.

Under Micron's compensation program, employees in Taiwan will receive at least NT$1.7 million (US$53,628) in cash compensation for fiscal 2026, with entry-level engineers expected to receive an average of NT$2.9 million in total compensation, including stock rewards. Average total compensation is expected to reach NT$3.4 million.

Micron Taiwan said the rewards will also include NT$1 million in bonuses to be distributed to employees who have been on the payroll since Aug. 29, 2025. Employees who joined Micron in 2026 will receive bonuses on a pro-rata basis.

Overall, Micron said, the rewards will be equivalent to 35-68 months' pay.

Last week, Micron Taiwan issued a statement saying it would unveil an Incentive Pay Plan (IPP) in October, providing details of what it described as the company's largest-ever bonus distribution, after about 80 percent of employees at its Taoyuan and Taichung plants voiced support for the union's plan to strike.

With global memory chip supplies failing to keep pace with robust demand, industry sources said a potential strike at Micron Taiwan could further constrain supplies and exacerbate the existing supply-demand imbalance amid the current AI boom.

According to international news reports, Taiwan is Micron's largest memory chip production base, accounting for about 60 percent of its total production capacity and largely producing DRAM and high-bandwidth memory chips.

In Friday's statement, Micron said it will continue to support talent, innovation, and manufacturing capabilities in Taiwan to strengthen the country's position as a global semiconductor leader.

Micron, the world's third largest memory chip supplier, posted record sales of US$41.46 billion and net income of US$28.24 billion in its fiscal third quarter ending May 28 as a supply shortage pushed up memory chip prices.