$MU Will Micron Taiwan go on strike? Don't rush to call it bad news
Micron Taiwan's union has nearly 10,000 members. Within August, an internal survey found that 80% support a strike. Their demand is a bonus equivalent to 83 months of pay, following the profit-sharing system used by Samsung and Hynix.
The trigger is simple: Micron made a huge profit this year from AI memory, and its stock price has tripled, but employees' profit-sharing amounts to only 2.6 months—far too low compared with competitors.
Is this really bad news? I think it's not that simple.
If there is a strike in the short term, it could actually make the already tight memory supply even tighter. Prices might not fall but instead rise, which may not necessarily be bad for revenue. The real risk is dragging it out—delaying HBM shipments and undermining trust with AI customers.
Also, the script looks familiar—Samsung was almost going on strike in May this year too. In the end, a profit-sharing deal was reached, and things calmed down. Micron will most likely follow the same path and negotiate rather than truly stop production.
As of now, talks are still ongoing, so don't jump to conclusions yet.
⚠️ Personal observations only, not investment advice.
Micron Taiwan's union has nearly 10,000 members. Within August, an internal survey found that 80% support a strike. Their demand is a bonus equivalent to 83 months of pay, following the profit-sharing system used by Samsung and Hynix.
The trigger is simple: Micron made a huge profit this year from AI memory, and its stock price has tripled, but employees' profit-sharing amounts to only 2.6 months—far too low compared with competitors.
Is this really bad news? I think it's not that simple.
If there is a strike in the short term, it could actually make the already tight memory supply even tighter. Prices might not fall but instead rise, which may not necessarily be bad for revenue. The real risk is dragging it out—delaying HBM shipments and undermining trust with AI customers.
Also, the script looks familiar—Samsung was almost going on strike in May this year too. In the end, a profit-sharing deal was reached, and things calmed down. Micron will most likely follow the same path and negotiate rather than truly stop production.
As of now, talks are still ongoing, so don't jump to conclusions yet.
⚠️ Personal observations only, not investment advice.
