Micron Suspends $4.5 Billion Memory Chip Factory Plan in Taoyuan

Micron Technology has largely suspended its plan to build a new memory chip factory in Taoyuan, Taiwan, due to labor disputes with employee unions. The project had an investment budget of $3 billion to $4.5 billion and was originally scheduled to start production in 2028. Micron is concerned that agreements reached with the union may be overturned, and currently, only a small amount of site safety maintenance work is being retained, with construction set to be frozen thereafter. The dispute stems from employee demands to share in the profit growth brought about by the AI boom, with the Taoyuan union requesting that Micron distribute 15% of its operating profits to global employees and seeking full cash bonuses. Although Micron has reached an agreement with the Taichung union, some employees are dissatisfied with the terms, and the Taoyuan union is attempting to expand its organization to push for renegotiation. The project was originally planned to produce High Bandwidth Memory (HBM) and DRAM using ASML's advanced equipment. The Taiwan region contributes approximately 60% of Micron's DRAM output, and the suspension of the project may impact Micron's long-term expansion plans in the region and increase uncertainty in the AI memory chip market. Micron stated that its existing operations in Taiwan are normal and will ensure business continuity for customers, but did not directly comment on the suspension of the Taoyuan project. The Taiwan Economic Department stated that the government will assist Micron in resolving differences with the union and promote the implementation of the investment plan.

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