Micron's $4.5 billion Taoyuan plant construction halted amidst labor dispute

Micron Technology has temporarily halted construction on its Fab 11E site in Taoyuan, Taiwan, due to an ongoing labor dispute with the local union. Bloomberg News reports that negotiations over profit-sharing terms have stalled, leading to a halt in site activity, aside from minor safety measures. Micron has not released an official statement, but has notified local authorities of the suspension. The company maintains that its operations remain unaffected and that it is committed to serving its customers.

While Micron recently offered a lucrative bonus package, with some workers potentially earning up to five times their annual salary, the Taoyuan union remains unsatisfied and is pushing for improved terms. The union conducted a one-day strike last month to highlight its position and the potential disruption to Micron's operations. This dispute is part of a broader trend among memory chip manufacturers, including Samsung and SK hynix, who are demanding larger profit shares.

SK hynix has announced significant bonuses, with employees set to receive up to $900,000 annually. Samsung Foundry workers also secured an average bonus of $340,000, averting a larger-scale strike. Despite these efforts, the company has not commented on the Taoyuan site halt, which precedes an upcoming meeting with the union. The Taiwan government expresses optimism for a mutually beneficial resolution between Micron and the workers.