[E-Daily Reporter JAEMIN SONG ] As the likelihood of a strike grows in Taiwan—a key production hub for Micron, the world’s third-largest memory chipmaker—attention is turning to whether SamsungElectronics and SK hynix will benefit as a result. With supplies of High-Bandwidth Memory (HBM) and server DRAM already tight due to demand driven by artificial intelligence (AI), any actual production disruptions could lead to orders being shifted from Micron to Korean manufacturers, potentially strengthening their bargaining power.

According to Reuters and local Taiwanese media on the 18th, labor and management at Micron’s Taichung plant are holding their first mediation meeting today. The Taoyuan plant is also scheduled for additional mediation on the 21st. The union has stated that if the company fails to present a concrete profit-sharing proposal, it may declare the negotiations a failure and proceed with a strike authorization vote.

If a strike were to materialize, it could create uncertainty in the global memory supply chain. The Taichung and Taoyuan unions represent more than 80% of Micron’s approximately 15,000 employees in Taiwan. Taiwan is Micron’s largest production hub, manufacturing DRAM and HBM. With supplies of AI-grade HBM and server-grade DRAM already tight, any production disruptions could further exacerbate supply pressures.

The likelihood of an actual strike is quite high. The union stated that in an internal online survey conducted last August, more than 80% of participating members supported a strike.

However, given the nature of semiconductor factories, it is unlikely that a strike would immediately lead to a complete shutdown of the entire facility. A semiconductor industry official stated, “Due to the nature of the manufacturing process, it is not easy to completely halt operations at a semiconductor factory,” adding, “However, there could be impacts such as a slowdown in production speed in certain processes.”

Nevertheless, the growing uncertainty in supply itself could work in favor of SamsungElectronics and SK hynix. This is because if there are disruptions in Micron’s supply volume, global tech giants will seek to secure alternative supplies, potentially shifting some demand to domestic companies. In particular, in the memory market—where suppliers continue to hold the upper hand—there is speculation that domestic companies’ bargaining power could increase in future supply contracts and price negotiations.

Behind the labor-management conflict lies a surge in earnings driven by the AI memory boom. Micron’s revenue for the third quarter of fiscal year 2026 reached $41.456 billion—more than four times that of the same period last year—while operating profit rose more than 15-fold to $33.318 billion, marking the company’s best-ever performance.

As earnings soared, demands for profit-sharing have intensified. Micron’s Taiwanese labor union is calling for the introduction of a permanent profit-sharing system—distributing 15% of global operating profit to employees—instead of one-time bonuses. In particular, they cited SamsungElectronics and SK hynix as direct points of comparison.

The union argued that the compensation package proposed by Micron amounts to only 4–5% of operating profit, stating, “This is a very low level compared to SamsungElectronics (10.5%) and INICS Corporation (10%) in South Korea, both of which have operating profit margins exceeding 10%.” They added, “The problem cannot be solved with one-time cash bonuses,” and demanded that 15% of Micron’s total operating profit be allocated as employee bonuses.

Tensions over performance-based compensation are also emerging at other semiconductor companies. TSMC, the world’s largest foundry, also faced internal backlash last May when speculation spread that annual performance bonuses could be cut by up to 15%, with some employees even raising the possibility of a strike or forming a union. TSMC subsequently moved to defuse the situation by announcing that employee performance bonuses would increase compared to the previous year. In fact, employee performance bonuses for the second quarter of this year totaled approximately 36 billion New Taiwan dollars, an increase of more than 50% compared to the same period last year.

A semiconductor industry official stated, “As the AI semiconductor market expands, expectations regarding employee performance bonuses are rising alongside corporate earnings,” adding, “If the strike at Micron actually affects production, it could work to the advantage of domestic companies in terms of supply and price negotiations, but it is also an issue that could impact labor-management relations in Korea.”