Micron Suspends $4.5 Billion Taoyuan Factory Project Amid Labor Dispute Threatening AI Memory Chip Production Expansion BlockBeats reports on November 5th, citing Bloomberg, that Micron Technology has essentially suspended its plans to build a new memory chip factory in Taoyuan, Taiwan, due to ongoing labor disputes with its union. The project, with an investment budget of $3 billion to $4.5 billion, was originally scheduled to begin production in 2028. Sources familiar with the matter stated that Micron is concerned that the agreement previously reached with the union may be overturned, and currently only minor site safety maintenance work is being carried out before construction is frozen. This dispute stems from employees' demands to share in the profit growth brought by the AI boom. The Taoyuan union is demanding that Micron distribute 15% of its operating profits to its global employees, and hopes to receive all-cash bonuses rather than partial stock-based rewards. Although Micron reached an agreement with the larger Taichung union in October, some employees are dissatisfied with the terms of the agreement, 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, utilizing ASML's advanced equipment. Taiwan currently contributes approximately 60% of Micron's DRAM production and is also a significant HBM production base, employing about 15,000 people. The project's suspension could impact Micron's long-term expansion plans in Taiwan and add uncertainty to the already tight AI memory chip market. Micron responded that its existing operations in Taiwan are running smoothly and it will ensure business continuity for its customers, but did not directly comment on the suspension of the Taoyuan project. Taiwan's economic authorities stated that the government will assist Micron in resolving its differences with the labor union and promoting the implementation of the investment plan. [Original Link]