Micron faces Taiwan labor risk as Lai urges sincere talks before possible strike

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Micron Taiwan labor risk

Highlights

Micron faces escalating labor risk in Taiwan as unions threaten strike over bonus disputes at its Taoyuan and Taichung hubs, urging concrete profit-sharing proposals.
Micron has invested over T$1.6 trillion (about $49.4 billion) in Taiwan and employs approximately 15,000 people at one of its key global manufacturing centers.
Micron's new Taichung facility's DRAM and HBM chip capacity for 2027 is already fully sold, with HBM expected to outpace DRAM industry growth through 2028.

Labor dispute unfolds at key Micron hub

As reported by Reuters, Lai made the appeal in Taichung at the opening of a new Micron advanced assembly and testing facility, saying the government and private sector should work together to improve communication between labor and management. He says both sides should continue negotiating sincerely and in good faith to build the broadest possible consensus, adding that harmonious labor relations would allow employees to work with peace of mind and businesses to expand steadily.

Last week, a Taiwanese union representing Micron workers says it secured authorization from members to strike over a dispute involving the company's bonus scheme, escalating a labor conflict at the chipmaker's largest manufacturing hub. Two unions representing workers at Micron's Taoyuan and Taichung operations say they want the company to present a concrete profit-sharing proposal for employees.

Mediation with the Taoyuan union ended without agreement in September, while the Taichung union remains in negotiations. The unions are encouraging members to take a day off on October 19 to join a rally in Taipei, which they say will not be a strike.

Investment plans and chip supply outlook

Micron employs about 15,000 people in Taiwan, one of its most important manufacturing centers, and says it has invested more than T$1.6 trillion, or about $49.4 billion, on the island. Lai says he appreciates the company's commitment to Taiwan and hopes it will keep expanding investment there, adding that Micron has secured government support for high-bandwidth memory research and development.

Taiwan remains a crucial production base for Micron's DRAM and HBM chips, which are used in AI servers. Manish Bhatia, Micron's president and chief operating officer, does not address possible strike action in remarks delivered shortly before Lai's, but says all of the capacity that the new factory will build for 2027 has already been sold and that HBM is expected to grow faster than the rest of the DRAM industry through 2028.

Neither Micron nor the workers' unions immediately responds to requests for comment on Lai's remarks. The dispute leaves labor relations in focus at a strategically important part of the global memory chip supply chain.

Our earlier article covered Queensland’s proposed overhaul of industrial relations rules following disruption tied to protected industrial action. It explained how the bill would expand the minister’s ability to terminate strikes in defined public-interest cases, while also tightening strike notice requirements and changing the threshold for psychological injury claims—moves that drew criticism from unions concerned about reduced access to support.

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