Micron Taiwan Fab 11E Project Hit by Union Dispute Over Profit Share

In October, Micron reached an agreement with a larger union in Taichung, but the Taoyuan workers rejected the terms offered to them. Management is concerned that the earlier deal could be challenged and declared invalid, which would force new negotiations.

A key project for AI memory

Fab 11E is planned in Taoyuan, northern Taiwan, with an estimated investment of $3 billion to $4.5 billion. It was meant to produce DRAM and HBM, the memory types used in AI accelerators and data centers, with a launch originally targeted for 2028. Micron intended to equip it with advanced tools from the Dutch company ASML.

Taiwan is central to Micron's manufacturing. By some estimates, the island produces about 60% of the company's DRAM chips and a significant share of its HBM. Roughly 15,000 people work there, about a quarter of Micron's global staff. A delay would affect not only capacity expansion but also Micron's effort to strengthen its position in AI memory against Samsung Electronics and SK hynix.

Talks continue

Micron says its existing Taiwanese facilities are operating normally and that it expects to keep supplying customers without interruption. The company plans to continue talks with the Taoyuan union with the help of local authorities, and Taiwan's Ministry of Economic Affairs has said it is ready to help resolve the conflict. The next meeting between the two sides is scheduled for November 6.