Micron Technology (NASDAQ: MU) shares extended their losses in early trading Thursday following a Bloomberg report that construction of the company’s planned memory-chip factory in Taoyuan, Taiwan, was largely suspended amid a prolonged labor dispute.
The shares traded at $719.19 as of 09:52 a.m. ET, down 9.56% from Wednesday’s closing price of $795.23.
The factory, known as Fab 11E, has an estimated budget of $3 billion to $4.5 billion and was originally scheduled to begin operations in 2028. The plant was planned to produce dynamic random-access memory (DRAM) and high-bandwidth memory (HBM), with HBM used in artificial intelligence systems.
The report said Micron has informed Taiwanese officials and a supplier about the construction halt. However, the Taoyuan city government told the news outlet it had not been notified of a suspension.
The labor dispute centers on compensation and profit-sharing involving Micron’s employees in Taiwan. Bloomberg reported that executives feared a challenge from the separate Taoyuan union could overturn the October agreement between Micron and the larger Taichung union.
According to Bloomberg, most construction work had stopped, although limited activity continued to secure the site. That remaining work was expected to cease once safety preparations were complete.
The planned investment includes purchases of advanced chipmaking equipment from ASML. No revised construction schedule has been disclosed.
Micron told the news outlet that its existing Taiwan operations remain normal and that it is confident it can maintain supplies to customers. The company did not directly confirm reports of a construction halt.
Taiwan accounts for approximately 60% of Micron’s global dynamic random-access memory (DRAM) production. The reported halt concerns planned additional capacity rather than a confirmed interruption at operating factories.
Counterpoint Research reported Thursday that Micron held 21% of global DRAM revenue in the third quarter of 2026, behind Samsung Electronics at 38% and SK hynix at 29%. Micron’s DRAM revenue grew more slowly than that of its two larger competitors. Across the industry, revenue surged 369% year over year, driven by higher memory prices and demand from AI infrastructure.
Micron Shares Extend Decline After 7% Drop
Micron shares fell 7% in Wednesday’s regular session, leaving the stock down 19.1% from its October 28 close of $983.23.
Wednesday’s losses coincided with broader selling in semiconductor stocks as investors assessed whether Democratic victories in the U.S. midterm elections could lead to tighter restrictions on data-center construction.
The Taiwan construction report emerged Thursday, after Wednesday’s regular trading session had ended.
Separately, Micron Technology Tokenized bStocks (MUB) traded at $719.11, down 14.19% over the preceding 24 hours, according to CoinMarketCap. MUB is a tokenized instrument distinct from Micron’s Nasdaq-listed shares.
Taoyuan Union Dispute Remains Unresolved
The reported construction suspension follows months of negotiations between Micron and unions representing employees at its Taiwanese facilities.
Micron reached an agreement with its larger Taichung union in October covering higher salaries, quarterly bonuses and increased pension contributions. However, the separate Taoyuan union remains dissatisfied with the terms.
The Taoyuan union represents more than 2,300 workers and is demanding that Micron distribute 15% of its operating profit to employees worldwide. Union chairman Jerry Lin also said workers want cash incentives rather than compensation partly paid in shares.
Micron announced a quarterly profit-linked bonus program for employees worldwide starting in fiscal 2027, with payments split evenly between cash and shares. However, the company did not commit to distributing a fixed percentage of operating profits.
The Taoyuan union subsequently rejected Micron’s bonus proposal, with 1,633 of the 1,637 participating members voting against the offer, according to the union.
According to Bloomberg, the Taoyuan union is seeking to recruit members from the larger Taichung union to challenge the existing agreement and reopen negotiations.
Micron believes the October agreement is legally binding, according to a person familiar with the company’s position. The company has said discussions with the Taoyuan union are continuing.
The Taoyuan union secured authorization to strike on October 7, when 1,994 members voted in favor of industrial action. Eleven union officials subsequently staged a 24-hour strike on October 22. Micron and the union are scheduled to resume negotiations on November 6, with Taiwanese labor authorities helping facilitate the talks.