Micron unveils global profit-linked bonus plan after Taiwan union pressure (updated)

Samsung Electronics

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Adds details on the plan, context and background throughout
Micron to launch global quarterly profit-linked bonuses from fiscal 2027
Taiwan workers to get higher pensions, more leave, shift pay and salary adjustments
Plan prompted by pressure from two Taiwan unions representing thousands of Micron workers 
Payouts tied to profit after planned investment, unlike fixed profit-sharing at Samsung and SK Hynix
By Wen-Yee Lee
TAIPEI, Oct 22 (Reuters) - US memory-chip maker Micron Technology MU.O will introduce quarterly company performance-linked payments for employees worldwide from fiscal 2027, it said, following pressure from unions in Taiwan for workers to share more of the profits driven by the AI boom.
The new scheme will supplement Micron's annual incentive programme, it said on Thursday. Unlike arrangements at South Korean rivals Samsung Electronics 005930.KS and SK Hynix 000660.KS, Micron did not disclose a set share of earnings or the total amount reserved for employees.
The announcement followed a Wednesday agreement with a union at Micron's larger Taichung operations. Talks with another union in Taoyuan had not produced a deal by Thursday. 
Taiwan is a major manufacturing base for Idaho-based Micron, which employs about 15,000 people on the island and makes memory chips used in artificial intelligence servers.
Micron said its quarterly bonus pool would be linked to financial performance, calculated using profit after tax minus projected capital spending for the next quarter, with fiscal 2026 as the baseline. It will pay half in cash after results, with the rest in shares vesting after one year.
The approach could limit payments while Micron expands production capacity, even if underlying earnings increase, because chipmakers spend heavily on plants and equipment before new capacity starts generating revenue.
     
TALKS WITH TAOYUAN UNION CONTINUE
The Taoyuan union said it planned to ask members to vote on Micron's latest proposal.
It has called for a transparent system allocating 15% of Micron's operating profit to employees globally, saying workers should receive a larger share of the company's AI-related gains.
Micron said it would continue discussions with the union.
It will also increase the maximum payment available under its annual incentive plan, which will focus on company targets such as strategic goals, it said in slides shown at a press briefing. The annual programme, new quarterly scheme and higher maximum payment will apply globally.
In Taiwan, Micron will raise employer retirement contributions to 10% from 8%, provide three extra paid days off, increase shift allowances and make structural salary adjustments, it said. The monthly allowance for day-shift workers will rise to NT$4,500 (US$138) from NT$1,500 (US$46) on December 1, 2026.
Micron said the Taiwan-specific changes were intended to strengthen its competitiveness in the local market.
SK Hynix agreed last year to allocate 10% of annual operating profit to an employee bonus pool. Samsung agreed in May to reserve 10.5% of its semiconductor division's operating profit for special bonuses, subject to profitability targets.

(Reporting by Wen-Yee Lee in Taipei; Writing by Andrew Silver in Beijing; Editing by Andrew Cawthorne, Eduardo Baptista and Emelia Sithole-Matarise)
((andrew.silver@thomsonreuters.com))