Micron Technology has paused construction of its planned $4.5 billion Fab 11E memory plant in Taoyuan, Taiwan, citing uncertainty in labor negotiations. The Taoyuan union wants a bonus worth 83 months' salary and a share of quarterly operating profits. The Taichung union has already reached an agreement with the company.
Micron has paused construction of Fab 11E, a planned $4.5 billion memory chip plant in Taoyuan, Taiwan. The company cites growing uncertainty around its labor negotiations. The suspension was reported on November 5, 2026.
Micron says it has briefed Taiwanese officials and its suppliers on the situation. Fab 11E was meant to produce advanced DRAM for AI-related memory demand.
Taoyuan union demands a bonus and profit share
The trigger was a warning strike by the Taoyuan union on October 22, the first strike in Taiwan's semiconductor sector. The union represents between 2,300 and 3,000 workers, and the Taoyuan site employs about 3,000 people.
The union wants a one-time bonus worth 83 months' salary. It also wants a mechanism that would give workers 15% of quarterly operating profits. Micron made counter-offers, but the union judged them inadequate.
Not every Micron site in Taiwan is in conflict, however. The larger Taichung union reached an agreement with the company on October 21, one day before the Taoyuan warning strike. Micron has reaffirmed that operations at its other Taiwanese sites will continue as normal.
Taiwan accounts for 50% to 60% of Micron's output
Taiwan accounts for 50% to 60% of Micron's total output. Micron employs approximately 15,000 workers there, and its cumulative investment in Taiwan exceeds NT$1.6 trillion, or around $50 billion.
Fab 11E was designed to use extreme ultraviolet lithography. Its budget has been reported in a range of $3 billion to $4.5 billion, and some sources note total spending could reach $4.5 billion once equipment from ASML is included.
The pause could limit Micron's ability to respond to AI-driven memory demand. If delays drag on, it could contribute to supply tightness and weigh on Micron's position relative to Samsung and SK Hynix. If Micron and the union find terms between the current offers and the 83-month bonus request, construction could resume. If not, further strikes remain on the table.
Source: Crypto Briefing
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