Chipmaker Micron Technology said Thursday it is introducing a new quarterly bonus program for employees worldwide tied to company profits, following demands from labor unions in Taiwan for profit-sharing.
The new bonuses will be in addition to existing annual incentive payments and will be paid 50% in cash and 50% in company shares. Micron will also increase retirement contributions for employees in Taiwan to 10% from 8% and add three days of paid leave.
Although the changes follow demands from Taiwanese labor unions, the quarterly bonus program will apply to employees worldwide. According to Taiwanese media outlets, including the Taiwan Economic Daily and Minbo, Micron announced the measures as part of a system reorganization plan released Oct. 22.
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The bonus amount will be calculated based on net profit after tax, minus capital expenditures for the following quarter, and adjusted according to each employee’s performance evaluation.
Employees rated “exceeds expectations” or “greatly exceeds expectations” will receive 110% of the standard quarterly bonus amount. Those rated “meets expectations” will receive 100%, while employees rated “needs improvement” will receive 35%. However, Micron has not disclosed the specific calculation formula, including what percentage of profits will be allocated to fund the bonuses, according to Business Korea.
Donghui Lu, chairman of Micron Taiwan, said the reorganization followed demands from labor unions in Taiwan’s Taoyuan and Taichung regions. He said greater transparency and predictability in the bonus system were among the unions’ key demands.
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Lu emphasized that the quarterly bonus is a newly established benefit and does not divert funds from the existing annual bonus program. The annual bonus will continue to focus on long-term research and development and strategic goals, rather than short-term profitability, he said.
Micron has also announced measures to improve working conditions for employees in Taiwan, according to Business Korea. In addition to increasing paid leave and retirement contributions, the company plans structural wage increases to address pay disparities between newer and longer-serving employees.
Micron aims to finalize the changes by the second quarter of fiscal 2027 and, if possible, implement them before the Lunar New Year.
Earlier this month, Micron agreed to a $600 million financial settlement with Netlist Inc. to resolve a series of patent infringement disputes. Under the multiyear agreement, Micron will make quarterly payments of $30 million.