Micron Taiwan Unit Reportedly Plans Record Bonuses To Avert Strike: MU Stock Dips For Second Day

• Micron’s Taiwan unit is reportedly preparing record bonuses in a bid to avert a strike.
• Taiwan is Micron’s largest manufacturing base.
• MU stock slipped for a second straight day on Wednesday.

The Taiwan unit of Micron Technology, Inc., Micron Taiwan, plans to offer record-high bonuses to avert a labor strike and would release a detailed offer in October, local news outlet TaiwanPlus reported on Tuesday.

Micron shares edged 1% lower in premarket trading on Wednesday. They closed 2.6% lower the previous day, after reports of an impending strike emerged.

The company's local labor unions have threatened to strike, saying current bonuses fall short of industry standards and demanding a one-time bonus worth nearly seven years' pay, TaiwanPlus reported.

On Tuesday, Reuters reported that unions were moving ahead with the strike and had the support of 10,000 staff members out of a total 15,000 staff the chipmaker has in Taiwan. More ​than 80% of members who took part in an internal online survey in August backed strike action, according to the unions.

Micron Taiwan Strike To Could Disrupt Global Supply 

The strike threat comes as booming demand for memory chips used in ​artificial intelligence hardware has tightened global supply and lifted profits across the sector.

Taiwan is Micron’s largest manufacturing base, with the company having invested about $43.9 billion on the island, making any prolonged labor disruption potentially significant for DRAM and high-bandwidth memory production.

Taiwanese authorities have warned that a strike could hit Micron’s operations, workers and the broader semiconductor supply chain, while the Central Taiwan Science Park administration is monitoring the dispute and could step in to mediate, Reuters reported.

At the heart of the dispute is Micron’s Incentive Pay Plan, which unions argue does not adequately reflect the company’s surging profitability. Micron, meanwhile, says its 2026 compensation package will be the highest in company history.

The standoff also highlights a widening compensation gap with South Korean rivals Samsung Electronics and SK hynix, where workers have been pushing for greater participation in the AI-driven memory boom.

Retail View On MU

On Stocktwits, the retail sentiment for MU remained ‘neutral,’ unchanged since the start of the week. Some traders noted that a bullish sentiment for the AI and server market from Dell’s remarkable results failed to lift Micron shares, unlike some other AI-linked stocks.

“MU First NVDA and now Dell, Micron’s earnings are going to be legendary, very good chance they hit $60 billion in revenue,” said a trader. The chipmaker will issue its fourth quarter results on Sept. 30.

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