Micron's Taoyuan union in Taiwan voted to authorize a strike over how the company splits its profits. No strike date has been set, and the larger Taichung union has not yet voted. Most of Micron's DRAM output in fiscal 2026 came from its Taiwan fabs.
Workers at Micron in Taiwan have come a step closer to a strike. On Oct. 7, the union at the Taoyuan site said 1,994 members voted to authorize a strike over how Micron splits its profits, which was 99% of the ballots cast, while just 14 voted against.
No strike date has been set. However, the union's chair has said a surprise walkout, announced to members by text on short notice, is on the table. The stock trades near $879, off about 28% from its record close of $1,213.56 in late June.
The union wants a share of operating profit
In an August poll, over 80% of participating union members backed strike action. Then mediation ended without a deal in September.
Micron raised fiscal 2026 incentive pay for all employees worldwide, according to CEO Sanjay Mehrotra's prepared remarks for the Sept. 30 earnings call. But the union wants a permanent system that gives 15% of Micron's operating profit to workers.
Under that formula, Micron's fiscal 2026 operating income of $99.3 billion would have meant around $14.9 billion for employees, about a third of the $43.8 billion the company made in the fiscal fourth quarter alone.
Taiwan carries most of Micron's DRAM output
A majority of Micron's DRAM output in fiscal 2026 came from its fabs in Taiwan, according to its annual report. DRAM revenue hit a record $39.8 billion in the fiscal fourth quarter, 73% of total revenue.
The vote covers the smaller of Micron's two big Taiwan sites. Taichung is Micron's largest base in Taiwan, and its union, which represents around 10,000 workers there and in Tainan, holds a second mediation session on Oct. 22. A failed session might lead to a strike vote there, too.
Customers have already bought the capacity
Management said on the Sept. 30 earnings call that over 75% of Micron's fiscal 2027 shipments were already committed. Micron President and Chief Operating Officer Manish Bhatia said at the Taichung opening: "We have already sold out all the capacity for 2027 that this factory will build,"
A long strike could leave Micron short on deliveries it has already promised.
Source: Motley Fool
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