With record earnings in the rearview, Micron faces Taiwan strike prospects

Investing.com -- Micron Technology (NASDAQ: MU) delivered record results after the close on Wednesday, but some in the memory maker's workforce are now pressing for a bigger share of the profits, with a strike vote in the works at its Taiwan operations.

Fourth-quarter revenue came in at $54.23 billion, ahead of the $50.45 billion consensus and nearly five times the $11.32 billion reported a year earlier.

Adjusted earnings of $33.42 a share beat estimates of $31.16. For the full fiscal year, revenue reached $133.19 billion against $37.38 billion the prior year, with operating margin at 76% on a non-GAAP basis.

Guidance was also strong, with Micron expecting first-quarter revenue of $60 billion to $63 billion, well above the $56.77 billion consensus, and earnings of $37.15 to $39.15 a share.

"Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027," said Chairman and CEO Sanjay Mehrotra, pointing to demand from AI and the company's Strategic Customer Agreements.

Some of those profits are the subject of a labor dispute. According to reports, Micron said its roughly 15,000 Taiwan employees would receive the company's largest-ever compensation package for fiscal 2026, worth the equivalent of 35 to 68 months of base salary for production staff.

Even so, the Taoyuan union is pushing for a permanent mechanism allocating 15% of operating profit to employee bonuses, rather than another one-off payout.

Union chairman Lin Che-jui has said the aim is a long-term, transparent system. Negotiations broke down on Sept. 21, and the union has announced plans for a strike vote.

Micron has said it remains willing to continue talks. Separate mediation with the Taichung union is scheduled for Oct. 22.

Taiwan is one of Micron's most important manufacturing bases for DRAM and the high-bandwidth memory used in AI servers, making any disruption a risk for investors at a time when supply is already tight.

A poll on workplace platform Blind found 75% of respondents support the Micron strikers receiving the additional 15%.

Original Article

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