Construction Halted at Fab 11E
Micron has paused construction on its Fab 11E site at Taoyuan as the company and its Taoyuan labor union have failed to reach an agreement regarding clearer profit-sharing terms. Activity on the site has all but halted, except for minor safety work, with executives reportedly concerned about uncertainties regarding negotiations with its workers. The company has informed local officials about the suspension.
Negotiations and Union Demands
Micron stated that its current operations continue as normal and expressed confidence in maintaining business continuity. While the company recently announced a bonus program and finalized a deal with the Taichung union, the Taoyuan union continues to hold out for improved terms. The two parties are scheduled to meet again on November 6, following a one-day strike organized by the union last month to demonstrate its resolve.
Industry-Wide Labor Pressures
Workers across major memory chip manufacturers, including Samsung and SK hynix, have recently increased pressure on employers to share profits generated by the AI memory chip boom. South Korean firms have faced similar demands, leading to significant bonus agreements to avoid operational disruptions. Employees in the sector are increasingly prioritizing substantial performance bonuses over other corporate incentives.
Global Expansion Strategy
Although Micron has not issued a formal statement regarding the specific suspension of work at the Taoyuan site, the timing coincides with upcoming negotiations. The company continues to develop other global facilities, including projects in Japan, Singapore, and the United States. The Taiwan government has expressed interest in facilitating a resolution between the company and its workforce.
