7/1013 sources · 6 publishersUpdated Nov 6, 11:17 UTC
Micron suspends construction of $3‑$4.5 bn Taiwan memory‑chip plant amid labor dispute
Micron Technology has halted work on its Fab 11E memory‑chip facility in Taoyuan, Taiwan. The plant, budgeted at $3 billion to $4.5 billion and slated to start production in 2028, was paused because a local union is demanding a profit‑sharing formula equal to 15 % of Micron’s global operating profit. Micron said its existing Taiwan operations remain unaffected.
Why it matters
The suspension delays a major capacity addition for AI‑related DRAM and HBM, which could tighten supply and weigh on Micron’s growth outlook. The news triggered a pre‑market share decline of about 5.21 % as investors priced in the risk (source 10).
Key facts
- 1Micron suspended construction of its Fab 11E memory‑chip facility in Taoyuan, Taiwan. invezz.com
- 2The project was budgeted between $3 billion and $4.5 billion. invezz.com
- 3Production was originally scheduled to begin in 2028. invezz.com
- 4The pause is due to a labor dispute with a local union whose members demand a profit‑sharing arrangement equal to 15 % of Micron’s global operating profit. invezz.com
- 5Micron said its existing Taiwan operations continue normally. invezz.com
- 6Micron shares fell 5.21 % in pre‑market trading after the news. finance.yahoo.com
Summary written by AlphAI AI Desk from 13 of 13 sources. Not investment advice. Figures are as stated by the linked sources.