A union representing workers at Micron Technology’s (MU) Taoyuan, Taiwan, plant has secured authorization from members to strike over the company’s bonus scheme. Talks with the U.S. chipmaker collapsed over proposed bonus reforms. The union is seeking a permanent profit-sharing plan that would allocate 15% of operating profit to employee bonuses.

The union had 2,258 eligible members. A total of 1,994 voted in favor of strike action. Taiwan is a critical production hub for Micron, accounting for 50% to 60% of its chip output, including components used in AI servers.

The union said it has the legal right to strike, but details and timing remain under discussion. It hopes Micron will present a concrete profit-sharing proposal to avert a work stoppage. The dispute highlights workers’ demands for a larger share of profits tied to the AI boom.