Micron Technology Inc. CEO Sanjay Mehrotra said record employee incentive compensation is weighing on the chipmaker’s margin outlook, even as memory demand exceeds its ability to fulfill customer orders. The company reported an adjusted gross margin of 87% in fiscal fourth quarter and guided to approximately 86.25% for fiscal Q1, a decline of 75 basis points. CFO Mark Murphy identified incentive compensation as the main driver of the outlook and said it, manufacturing startup costs and other items would add roughly $1 billion to fiscal Q1 costs. Micron expects the quarter to mark its gross-margin floor for fiscal 2027. More than 75% of expected 2027 output is committed, customer discussions are moving toward 2028, and 26 strategic agreements extend in some cases through 2031. In Taiwan, workers at Micron’s Taoyuan operation began a six-day strike authorization vote after mediation failed to resolve a profit-sharing dispute. The union seeks quarterly bonuses equal to 15% of Micron’s operating profit, while the company has offered fiscal 2026 rewards worth 35 to 68 months of pay.