According to ChainCatcher, citing Bloomberg, Micron Technology has largely halted plans to build a new memory chip factory in Taoyuan, Taiwan, due to an ongoing labor dispute with its employee union. The project, with an estimated investment of $3 billion to $4.5 billion, was originally scheduled to begin production in 2028. Sources familiar with the matter said Micron is concerned that a previously agreed-upon contract with the union may be overturned; only minimal site security maintenance is currently ongoing, with full construction suspension expected soon. The dispute stems from employee demands to share in the profit growth driven by the AI boom. The Taoyuan union is calling for Micron to allocate 15% of its operating profits to global employees and to provide full cash bonuses rather than partial stock-based compensation. Although Micron reached an agreement in October with the larger Taichung union, some employees remain dissatisfied with the terms, and the Taoyuan union is seeking to expand its membership to push for renegotiation. The facility was planned to produce high-bandwidth memory (HBM) and DRAM using advanced equipment from ASML. Taiwan currently accounts for approximately 60% of Micron’s DRAM output and serves as a major HBM production hub, employing around 15,000 people. Micron responded that its existing operations in Taiwan are functioning normally and that it remains committed to ensuring business continuity for customers, but declined to directly comment on the suspension of the Taoyuan project. Taiwan’s Ministry of Economic Affairs stated that the government will assist Micron and the union in resolving their differences and facilitating the implementation of the investment plan.
Micron Halts Construction of $3–4.5 Billion Taiwan Plant Amid Labor Dispute
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Summary
Micron has paused its announcement of a $3–$4.5 billion memory chip plant in Taoyuan, Taiwan, due to a labor dispute with local unions. The facility, planned to produce HBM and DRAM using ASML equipment, was expected to begin operations in 2028. Taoyuan workers are demanding 15% of operating profits in full cash, rather than partially in stock. Micron reached an agreement with a larger union in Taichung in October, but tensions persist. The company stated that its current operations in Taiwan remain unaffected, and local authorities will assist in resolving the dispute. New token listings are unrelated to this development.
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