A group of workers at US chipmaker Micron Technology’s plant in Taiwan went on strike on October 22 after negotiations over profit-sharing and employee bonuses failed to reach an agreement, according to media reports.

The dispute comes amid surging demand for chips used in artificial intelligence (AI) infrastructure and data centres, which has boosted revenues across the semiconductor industry. Workers are seeking a greater share of the profits generated by the sector’s growth.

According to the US International Trade Administration, Taiwan accounts for more than 90% of global leading-edge chip manufacturing and over 60% of global foundry revenue, making it a critical player in the global AI supply chain.

Five striking workers gathered outside Micron’s Taoyuan plant, near Taipei, while the company held a conference call with hundreds of other employees at the facility, The Straits Times reported.

A banner at the site read: “Micron failed to propose a profit-sharing scheme. The Taoyuan union will immediately begin strike action,” the report added.

Jerry Lin, chairman of the union representing workers at the Taoyuan plant, told reporters: “If you give up, that’s when the game is over. The Taoyuan union has not given up. We held negotiations at the Taoyuan City government on Oct. 21, but no consensus was reached.”

The 24-hour warning strike began at 9 a.m. and involved 11 union officials, while production lines were not directly halted, Caixin Global reported.

The union represents approximately 2,335 workers, or around 70% of the Taoyuan plant’s workforce, it added.

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