Micron union threatens action over demand for 15% profit-sharing

  • Micron’s Taiwan union demands profit-sharing and threatens industrial action.
  • 15% of operating profits would be allocated to employee bonuses under the union’s proposal.
  • Taiwan requires mediation before any strike can legally begin at Micron facilities.

Micron Technology shares fell 5.3% on Monday as broader technology stocks weakened over concerns that artificial intelligence infrastructure spending could slow, then recovered 1.1% in Tuesday’s premarket session. Attention has shifted to a potential labor dispute in Taiwan, where a union representing Micron employees is demanding a profit-sharing structure that would allocate 15% of operating profits to worker bonuses and is threatening industrial action. Taiwan-based production employees were previously offered compensation worth 35 to 68 months of base pay for fiscal 2026, including a one million New Taiwan dollar cash award, approximately $31,377, for workers who joined before August 29, 2025. Taiwan’s labor regulations require mediation before a strike can legally begin. The dispute follows similar compensation demands at Samsung and SK Hynix, where bonus arrangements equal to 10.5% and 10% of operating profit, respectively, have been agreed or discussed. Pella Funds Chief Investment Officer Jordan Cvetanovski said memory semiconductor stocks could perform strongly over the next 12 to 24 months because of elevated margins and solid industry fundamentals, while warning that sustained profitability could encourage capacity expansion and pressure prices. Analysts expect Micron to report $31.30 in earnings per share and $50.78 billion in revenue on September 30, compared with $3.03 per share and $11.31 billion a year earlier. Wall Street’s consensus rating is Buy, with an average price target of $1,521.74. Micron was trading at $923.11 in Tuesday premarket activity, down 0.10% after Monday’s 5.25% decline; technical support was identified near $887.50 and resistance near $1,012. The company had not responded to media inquiries by early Tuesday morning.

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Micron union threatens action over demand for 15% profit-sharing - CoinPost Terminal