Micron union in Taiwan plans one-day walkout over bonus pay

A labor union at Micron Technology’s operations in Taiwan plans to stop work for one day, Nikkei Asia reported, after a disagreement over bonuses grew sharper. BusinessKorea reported that the walkout at Micron’s Taiwan plant is scheduled for Oct. 22 and that the quarrel centers on profit-sharing.

Micron has not commented publicly on the dispute. It is not known how many workers would take part or whether production would be affected.

Profits at the heart of the dispute

The pay fight follows a very large quarter for Micron. In the fiscal fourth quarter, which ended Sept. 3, revenue reached US$54.229 billion, according to the annual report Micron filed on Oct. 9. That was up 379.27% from a year earlier and 30.81% from the quarter before. Micron’s fiscal quarters end about a month earlier than those of Samsung Electronics and SK hynix.

Operating profit came to US$43.751 billion, up 1,097.35% from a year earlier and the highest in at least six quarters. Net income was US$37.701 billion. That is the pool of earnings a profit-sharing claim draws on.

For investors in Korean memory stocks, a labor dispute at a Micron site touches on supply, which is already in focus. In Seoul, Samsung Electronics and SK hynix shares recovered, with tight chip supply and AI demand cited as reasons, Maeil Business Newspaper reported.

Shares edge lower

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Micron closed at US$896.07 on Nasdaq on Oct. 20, down 0.98% from US$904.90 a session earlier. No reason for the move has been reported. The PHLX Semiconductor Index, a gauge of US-listed chip stocks, slipped 0.29% over the same session. Since the Sept. 30 close, Micron shares have lost 15.87%.

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Information only, not investment advice.