Micron Technology's Taiwanese union, which represents local workers, said it could move towards a strike unless the chipmaker moves to a permanent profit-sharing system, Reuters reported Tuesday.

Micron relies heavily on Taiwan for the production of its DRAM and high-bandwidth memory (HBM) chips, the report said.

To date, no strike has been called but labor action could amplify supply concerns, the report added.

The union is seeking transparency in the profit-sharing system and is demanding 15% of the company's operating profit to be shared with employees globally, the report noted.

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