Micron Technology shares went up before the market opened on Tuesday as worries about a wider AI slowdown faded. Now, the memory chipmaker is dealing with a more familiar issue: the possibility of a labor strike.
The stock climbed 1.1% in premarket trading, bouncing back after dropping over 5% the day before during a wider tech selloff linked to concerns about an AI slowdown.
Micron is still making strong profits from AI-related memory chips, but its workers want a bigger share. According to Reuters and local Taiwanese media, Micron’s union in Taiwan is threatening to strike unless the company agrees to a new profit-sharing deal.
This strike threat first came up earlier this month, and tensions remain even after Micron offered new pay packages to its production workers in Taiwan. The packages are worth 35 to 68 months of base salary for fiscal 2026, plus a bonus of about $31,377 for employees who joined before August 29, 2025. However, this offer has not met union demands. According to Reuters, the union still wants a plan that would give 15% of operating profit to employee bonuses.
Micron is not the only company dealing with labor pressure as memory chip profits rise. Earlier this year, Samsung Electronics avoided a strike in South Korea by agreeing to a new bonus pool for its semiconductor division, equal to about 10.5% of the division’s operating profit, paid in stock. SK Hynix is still negotiating with its unions after promising to give 10% of its yearly operating profit to employee bonuses.
Micron is based in the U.S., but much of its manufacturing happens in Taiwan. A strike there could seriously disrupt its operations. Under Taiwanese labor law, any strike would first need to go through mediation. Micron did not respond right away to a request for comment.
