Micron Halts Taiwan Fab Construction, Facing Union Demand for 15% Profit Share
U.S. chipmaker Micron Technology has effectively halted construction of a new memory chip plant in Taiwan amid a wage dispute with local unions, putting a major investment project worth up to 6 trillion won at risk as labor and management remain at odds over how to distribute profits generated by th
U.S. memory chip manufacturer Micron Technology halted construction of a new production facility in Taoyuan, Taiwan, amid a labor dispute with local unions demanding a 15% share of profits. The $3 billion to $4.5 billion project, expected to begin operations in 2028, was suspended after the Taoyuan union rejected a proposed agreement offering significantly higher compensation for engineers and demanded a permanent profit-sharing system.
Only safety inspections at the site continue, with the facility's construction set to stop entirely once those checks are complete. The dispute has raised concerns about supply chain disruptions, as Taiwan accounts for roughly 60% of Micron's global DRAM production. The Taoyuan union has secured the right to strike and has proposed allocating 15% of operating profit to a quarterly bonus pool, along with other demands.
Micron shares dropped nearly 17% in response to the news, but the company remains optimistic about maintaining business continuity and reaching an agreement with the union.
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