Micron Technology has reportedly suspended construction at its $4.5 billion memory chip facility in Taoyuan, Taiwan, as negotiations with local workers over bonuses and profit sharing remain unresolved.
The suspension affects the company's Fab 11E project, which was expected to expand its semiconductor manufacturing capacity in one of its most important production regions.
According to people familiar with the situation, most construction activity has stopped, although limited work continues to maintain safety at the site.
The development comes as demand for memory chips remains strong, particularly for artificial intelligence infrastructure and high bandwidth memory.
Micron has not publicly confirmed the construction suspension but maintains that its existing operations are continuing normally.
Micron Workers Demand Clearer Profit Sharing Terms
The disagreement centers on how employees should benefit from the company's growing profits.
Workers at Micron's Taoyuan facilities have been seeking a more transparent profit sharing arrangement, arguing that increased demand for AI memory chips should translate into better compensation.
The local union has reportedly requested that Micron distribute 15% of its operating profit among employees worldwide.
Workers are also seeking cash bonuses rather than compensation that partially depends on company shares.
Micron previously reached an agreement with its larger Taichung union in October. However, some employees have questioned the terms, while the Taoyuan union continues to demand further negotiations.
The Taoyuan union also organized a one day strike in October to demonstrate its dissatisfaction.
Another round of negotiations is scheduled for November 6, 2026.
Construction Delay Could Affect Micron's Memory Expansion Plans
The Fab 11E project reportedly carries an investment budget ranging from $3 billion to $4.5 billion, including semiconductor manufacturing equipment.
The facility was previously expected to begin operations in 2028.
A prolonged construction suspension could affect the company's planned capacity expansion, although the effect on its final production schedule remains uncertain.
Taiwan is particularly important to Micron because it accounts for approximately 60% of the company's DRAM production and hosts a substantial portion of its high bandwidth memory manufacturing operations.
Micron employs around 15,000 people in Taiwan, making the region one of its largest manufacturing and employment centers.
The company is also investing in semiconductor facilities in Japan, Singapore and the United States as it expands its global manufacturing operations.
For now, Micron says it remains confident about maintaining customer supply and is seeking an agreement with its workers.
The outcome of the November 6 negotiations could provide more clarity about when construction activity at Fab 11E might resume.
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