Micron Halts Construction of $4.5 Billion Taoyuan Plant Amid Labor Dispute
Micron has paused construction on its Fab 11E site in Taoyuan due to unresolved negotiations with the local labor union over profit-sharing terms.
US semiconductor manufacturer Micron Technology has halted construction on its Fab 11E site in Taoyuan, Taiwan. According to Bloomberg, activity on the site has all but stopped, except for minor safety work, as the company and its Taoyuan labor union have failed to reach an agreement regarding clearer profit-sharing terms.
Micron has not released a formal statement about the suspension but has informed local officials. The company stated, "Taiwan plays an important role in Micron’s global footprint, and our operations today continue as normal," expressing confidence in maintaining business continuity for customers.
The halt comes at a critical time for negotiations. Micron recently announced bonuses potentially reaching five times annual salary for some eligible workers and reached a deal with the larger Taichung union, though some members expressed dissatisfaction. However, the Taoyuan union continues to hold out for better terms, with both parties set to meet again on November 6. Last month, the union launched a one-day strike to demonstrate resolve and highlight potential operational disruptions.
Workers at the big three memory chip manufacturers—Micron, Samsung, and SK hynix—have been protesting to demand a larger share of the massive profits generated by the AI memory chip boom. SK hynix agreed to pay staff $50,000 apiece, with employees receiving $477,000 in bonuses this year and up to $900,000 next year. Samsung Foundry workers secured an average $340,000 bonus, averting a massive strike.
While Micron is developing other sites globally, including an HBM fab in Japan and a $24 billion project in Singapore, the Taoyuan shutdown underscores how rising labor costs and tense industrial relations could impact the expansion speed of the AI hardware supply chain.