Micron Unveils Global Profit-Linked Bonus Plan After Taiwan Union Pressure
US memory-chip maker Micron Technology will introduce a quarterly company performance-linked payment plan for employees worldwide from fiscal 2027, following pressure from unions in Taiwan for workers to share more of the profits driven by the AI boom.
The new scheme will split the payouts evenly between cash and company stock, supplementing existing annual awards. This move addresses demands from Taiwanese unions, but it comes on a day when the stock was already under pressure due to sector-wide concerns about costlier credit potentially slowing data-center construction.
Under the new plan, half of each quarterly bonus will be paid in cash and half in shares, with the profit-sharing calculation factoring in expected capital spending for the following quarter. The shares will vest in full after one year. This design is not purely earnings-based, weighing planned investment alongside profit.
The plan applies globally, extending beyond the Taiwanese sites at the center of the labor talks. Workers in Taiwan receive a broader package, including increased pension contributions, additional paid vacation days, higher shift allowances, and structural salary adjustments.
The new model falls short of what the Taoyuan union is demanding, a permanent 15% share of Micron's operating profit for employees, along with greater transparency in the existing incentive plan. Talks are set to resume on October 23, and the impact of the walkout on production remains uncertain.
