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Micron Technology Inc. (NASDAQ:MU) builds the memory chips inside AI servers. Its workers in Taoyuan, Taiwan, just sent a blunt message about who builds them.

Of 1,637 union members who voted on the company’s latest bonus offer, 1,633 rejected it, entrepreneur and independent analyst Shehroz Hussain wrote in his Tape Out newsletter. 

The tally comes to 99.8% of ballots cast and, in Hussain’s words, "nearly 70% of the union’s membership."

The Taoyuan union confirmed the count in a statement on Sunday. "No" votes topped half of its entire membership, the union said, and first-day turnout beat its earlier strike vote.

• MU stock is climbing. See the real-time price action here.

What Workers Turned Down

Micron plans quarterly performance-linked payments for employees worldwide starting in fiscal 2027, on top of its annual incentive program. 

The pool is calculated as after-tax profit minus projected capital spending for the next quarter, using fiscal 2026 as the baseline. Half gets paid in cash after results, with the rest in shares vesting after one year. 

However, one number is missing. Unlike its South Korean rivals Samsung Electronics Co. Ltd. and SK Hynix Inc., Micron did not disclose a set share of earnings or the total amount reserved for employees, according to Reuters. 

"The union still wants 15% of operating profit," Hussain wrote, referring to profit from the core business before interest and taxes.

"A strike has never been the goal, but a means of fighting for reasonable profit-sharing," the union said. It urged Micron not to use its 24-hour warning strike to "threaten and divide" workers.

Why the AI Boom Should Care

Taiwan is a crucial production center for Micron’s DRAM and high-bandwidth memory (HBM) chips, both key components in AI servers.  DRAM serves as a computer’s working memory, while HBM is a faster, stacked version mounted beside AI processors.  

Micron employs about 15,000 people on the island, and its two unions together represent more than 80% of the Taiwan workforce. Labor action could amplify supply concerns in an already tight memory-chip market, according to Reuters.  

Taipei is paying attention. Taiwan’s labor ministry urged Micron to consider workers’ concerns, put forward concrete proposals and negotiate with the union. On Oct. 15, President Lai Ching-te called on Micron and its workers to negotiate sincerely, Reuters reported.  

Cracks in Taichung, Too

Management and the union at the larger Taichung facility signed an agreement on Wednesday, after which both sides withdrew from planned mediation. Reuters reported the terms were not made public. 

Even so, the Taoyuan union says some Taichung members have launched a petition to withdraw their representatives’ authority. It has not disclosed how many signed.  

The two sites are separate legal entities, so the Taichung deal does not cover Taoyuan. Talks there resume Oct. 27.

The Takeaway 

Hussain narrowed the story to one figure: "the percentage Micron eventually attaches to its profit pool, against the union’s 15% ask." In his view, "A number near that would show up in Micron’s Taiwan cost base."

MU Stock Price Activity: Micron stock was up 3.43% at $887.48 at the time of publication Monday, according to Benzinga Pro market data.

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