Micron Is Making Record Profits. Its Taiwan Workers Are Walking Out

A union representing 2,258 eligible Micron Technology (NASDAQ:MU | MU Price Prediction) workers in Taoyuan, Taiwan, plans to walk off the job on Thursday, October 22, 2026. That is the same day Micron meets a separate, larger union in Taichung for mediation.

The Taoyuan union calls it a one-day warning strike. It says the walkout is meant to show solidarity with Taichung and to push for a concrete profit-sharing plan, and it will sign if Micron makes an acceptable proposal.

This is one union within Micron’s Taiwan workforce, which numbers about 15,000. The Taichung union is still negotiating and has not voted to strike, and no production disruption has been reported.

The stock closed October 20 at $896.07, down 0.98%. It is down 11.77% over the past month, so the strike news landed on a stock that was already falling.

Workers Rejected an Offer of 68 Months’ Pay

The union wants a one-off bonus equal to 83 months’ pay. It also wants a permanent system that gives workers 15% of operating profit, paid every quarter.

Micron offered up to 68 months of pay last month, and workers turned it down. The company says it is “committed to constructive engagement” with both unions.

Micron already paid Taiwan workers a NT$1 million (about $31,400) cash bonus as part of its fiscal 2026 rewards. The union wants a set formula instead of one-time payments, and 99% of votes supported strike authorization on October 7.

A Profit Pool That Tripled in a Year

Fiscal 2026 revenue reached $133.19 billion, up from $37.38 billion. Operating income came to $99.34 billion, and gross margin rose to 81% from 40%.

Guidance for the first quarter of fiscal 2027 calls for $61.5 billion in revenue. With profits that large, a fixed percentage of operating profit becomes a much bigger commitment than any single bonus.

Management has already said labor costs are rising. Higher bonus pay, startup costs, and other items add up to “roughly a billion dollars of higher cost in Q1”, so some increase in pay is already in the guidance.

Taiwan Makes Most of Micron’s DRAM

Taoyuan makes DRAM and high-bandwidth memory (HBM, the stacked memory used in AI servers). Micron makes 50% to 60% of its chips in Taiwan.

Its annual report states, “A majority of our DRAM production output in 2026 was from our fabrication facilities in Taiwan,” and it warns that a work stoppage “could cause significant business interruption.” A one-day walkout by a minority of staff is unlikely to reduce output. A long disruption is possible, though, and it could get much more serious if the Taichung union joins.

In Korea, rivals are already sharing the profits. Samsung set aside 10.5% of its chip division’s operating profit for special bonuses to head off a strike in May. SK Hynix agreed to put 10% of annual operating profit into its bonus pool and removed the cap.

Those deals give Taiwan workers a clear benchmark. The most likely settlement is a formula close to the Korean levels, which would sit below the union’s 15% demand.

What Could Change the Outlook for MU Stock

The fundamentals still look good despite the labor dispute. A profit-sharing formula would trim margins slightly.

The shares trade at 7 times forward earnings, and the average analyst price target is $1,585.93. A labor deal tied to profits matters far less than that valuation.

This view changes if the Taichung union holds its own strike vote after the October 22 mediation, or if the Taoyuan walkout runs past one day. Either step would put DRAM supply at risk.

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