Micron Technology will introduce a quarterly, company performance-linked bonus scheme for employees worldwide from fiscal 2027, following union pressure in Taiwan for workers to receive a greater share of profits generated by the artificial intelligence boom.
The new scheme will supplement the US memory-chip maker’s existing annual incentive programme. However, Micron has not disclosed a fixed percentage of profits allocated to employees or the total amount set aside for the bonus pool.
Under the proposed structure, the quarterly pool will be linked to financial performance, calculated using profit after tax minus projected capital expenditure for the following quarter, with fiscal 2026 serving as the baseline. Half of the payout will be made in cash after the results are announced, while the remaining half will be paid in shares that vest after one year.
The announcement followed an agreement reached with a union at Micron’s larger Taichung operations in Taiwan. Negotiations with another union in Taoyuan remained ongoing as of 22 October.
Alongside the quarterly scheme, Micron will increase the maximum payout available under its annual incentive programme, which is linked to company targets, including strategic goals. Both changes will apply globally.
The company has also announced additional benefits for employees in Taiwan, including an increase in employer retirement contributions from 8 to 10 per cent, three additional paid days off, higher shift allowances and structural salary adjustments.
The move comes as semiconductor companies face growing pressure to share the financial gains from surging demand for AI-related chips with employees.
Micron employs around 15,000 people in Taiwan, a key manufacturing base for the company’s memory chips used in AI servers.
