Micron Halts $4.5 Billion Taiwan Chip Plant Amid Labour Dispute, Bloomberg Reports

Micron Technology has largely halted construction of a $4.5 billion memory chip plant in Taiwan amid a prolonged labour dispute with a local union, Bloomberg reported on Thursday, citing people familiar with the matter. The US chipmaker has all but stopped work on the planned Fab 11E facility in Taoyuan, a city in northern Taiwan, the report said. The plant was scheduled to begin production in 2028 and was intended to make advanced DRAM and high-bandwidth memory (HBM) for AI accelerators, using top-end equipment from ASML. Micron has informed Taiwanese officials and a supplier about the decision to suspend construction, according to the people, who spoke on condition of anonymity because the discussions are private. Only minor work to keep the site safe is continuing, and construction will freeze once that is done. Micron has not confirmed the pause. The company said Taiwan plays an important role in its global manufacturing footprint, that local operations continue as normal, and that it is confident in securing customer supply. It did not directly address whether construction would resume or give a new timeline.

A dispute over pay and profit-sharing

The dispute centres on bonuses, salary adjustments and long-term profit-sharing, with workers seeking a larger share of Micron’s earnings from the AI boom. In September 2026, Micron offered staff at its larger Taichung site a one-time bonus of NT$1 million (about $31,400). The Taoyuan union rejected the company’s profit-sharing proposal — about 70% of its members voted against it on 23 October, a day after a one-day warning strike — and is asking for a permanent system that would allocate 15% of the company’s operating profit to employees. Micron reached an agreement with the larger of its two Taiwan unions in October, covering quarterly profit sharing, compensation restructuring, shift allowances, additional paid leave and pension contribution rates. But some employees are balking at the terms, according to Bloomberg’s sources, and the company may need to renegotiate. The Taoyuan labour bureau convened two rounds of talks, on 21 and 27 October, over the bonus calculation basis, information transparency and union demands, with differences remaining. A third round is set for 6 November, with the city government acting as a neutral mediator. The Taoyuan union said on Thursday that the Bloomberg report was not an official Micron announcement and needed checking. Taiwan’s Ministry of Economic Affairs said the government supported the legal agreement the company had reached with the union and would help resolve the differences, while the Taoyuan government said it had not been notified of a suspension.

Why it matters for AI memory supply

Taiwan accounts for roughly 60% of Micron’s global DRAM output and serves as a key production hub for HBM-related products, according to Bloomberg. Micron has invested close to $50 billion in Taiwan over three decades. The reported pause throws into question the fate of a major production base for components used in artificial intelligence infrastructure, at a time when demand for high-bandwidth memory is closely tied to AI data-centre buildout and memory supply is already tight. Micron had budgeted between $3 billion and $4.5 billion for the Taoyuan complex, including purchases of ASML equipment, one of the people told Bloomberg. The budget was about NT$148.1 billion, according to Taiwan’s Central News Agency. Fab 11E was not yet producing anything, so current output is not affected. Micron said its existing facilities in Taiwan continue to operate normally and deliveries to customers will continue.

Shares fall on the report

Micron shares fell nearly 5% in premarket trading after the report, and the stock traded 4.71% lower in Europe on Thursday afternoon, at 682.85 euros on Lang & Schwarz against Wednesday’s Xetra close of 716.60 euros. The drop came on a day of heavy selling across chip stocks, with the Nasdaq on track to confirm a correction as investors reassessed AI spending and the prospect of tighter scrutiny of data-centre expansion.

What happens next

– A third round of labour talks between Micron and the Taoyuan union is scheduled for 6 November. – Micron has not said whether the pause is temporary or whether it is reviewing its Taiwan manufacturing footprint. – No timetable for restarting construction has been published, and the report rests on unnamed sources — Reuters said it could not immediately verify it.

FAQ

Has Micron confirmed it halted the Taiwan plant? No. Bloomberg reported the suspension citing people familiar with the matter. Micron said its Taiwan operations continue as normal and did not directly address whether construction would resume. Reuters said it could not independently verify the report. How much was Micron investing in the plant? Between $3 billion and $4.5 billion in the Fab 11E complex in Taoyuan, including ASML equipment, according to Bloomberg’s sources. The plant was scheduled to start production in 2028. What is the labour dispute about? Bonuses, salary adjustments and long-term profit-sharing. The Taoyuan union wants a permanent system allocating 15% of operating profit to employees; Micron offered a one-time bonus and a quarterly profit-sharing bonus from fiscal 2027. Does the pause affect current chip supply? No — Fab 11E was not yet producing anything, and Micron says its existing Taiwan facilities continue to operate normally. Taiwan accounts for about 60% of Micron’s DRAM output. What happens next? A third round of labour talks is set for 6 November. Micron has not said whether the pause is temporary.

Sources

– The Edge Singapore (Bloomberg) — “Micron said to pause work on US$4.5 bil Taiwan plant after labour spat” (5 Nov 2026): https://www.theedgesingapore.com/news/artificial-intelligence/micron-said-pause-work-us45-bil-taiwan-plant-after-labour-spat – TipRanks — “Micron Stock News: $4.5B Taiwan Plant Put on Hold amid Labor Dispute” (5 Nov 2026): https://www.tipranks.com/news/micron-stock-news-4-5b-taiwan-plant-put-on-hold-amid-labor-dispute – TradingKey — “Micron Halts $4.5 Billion Taiwan Plant Construction Amid Labor Dispute” (5 Nov 2026): https://www.tradingkey.com/analysis/stocks/us-stocks/262282513-micron-pauses-4-5b-taiwan-plant-construction-labor-disputes-mu-tradingkey – Voltgrid News — “Micron Reportedly Pauses Work on Taiwan Fab Budgeted Up to $4.5 Billion” (5 Nov 2026): https://voltgridnews.com/story/micron-reportedly-pauses-work-on-taiwan-fab-budgeted-up-to-4-5-billion – Reuters — “Nasdaq set for correction as investors reassess AI spending boom” (5 Nov 2026): https://www.reuters.com/markets/us/nasdaq-set-correction-investors-reassess-ai-spending-boom-2026-11-05/