Micron has suspended construction of Fab 11E, its new Taoyuan memory plant, after talks with the Taoyuan union over profit-sharing stalled. The company says its existing Taiwan production lines are running normally.
The Taoyuan union is recruiting members from Micron's Taichung union to build a larger bloc and reopen the labor agreement signed there on October 21. Taichung union chairman 徐志銘 says that deal has legal effect. Micron paid a three-part bonus to about 4,300 Taiwan production workers on October 30; about 700 of them ended the year with total pay above 60 months' salary.
Why it matters
A prolonged stop at Micron's Taiwan plants would tighten AI memory supply and push up chip prices.
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Key Indicators
83 months
Taoyuan bonus demand
The union is seeking a one-off bonus of 83 months' salary plus a permanent system giving workers 15% of operating profit.
15%
Profit-sharing demand
The Taoyuan union wants 15% of operating profit, above Samsung's 10.5% and SK Hynix's 10% formulas.
1,633 of 1,637
Taoyuan members rejecting offer
The union says 1,633 of the 1,637 members who voted opposed Micron's proposal.
22%
Taoyuan share of Micron DRAM
KB Securities estimates the Taoyuan plant makes about 22% of Micron's DRAM.
4,300
Workers paid three-part bonus
Micron paid an annual bonus of 7.5 to 12.5 months' salary, a mass-production bonus of 20% of annual pay and a NT$1,000,000 one-time payment to about 4,300 Taiwan production-line staff on October 30.
~700
Workers at five years' pay
About 700 of those workers ended the fiscal year with total compensation above 60 months' salary, roughly 17% of the 4,300 production-line staff.
FY2027
Quarterly bonus start
Micron's global profit-linked quarterly bonus begins in fiscal 2027, half cash and half stock.
15,000
Micron employees in Taiwan
A key manufacturing base producing most of Micron's DRAM and high-bandwidth memory chips.
$3B–$4.5B
Planned Fab 11E investment
Micron's Taoyuan plant for high-bandwidth memory and advanced DRAM, with production originally scheduled for 2028. Construction is suspended.
17 events
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November 2026
Taoyuan union recruits Taichung members to reopen deal
LatestLabor
The Taoyuan union began recruiting members from Micron's Taichung union, aiming to overturn the October 21 agreement and restart negotiations. Taichung union chairman 徐志銘 said the agreement has legal effect and that he respects the Taoyuan union's approach.
Micron and Taoyuan union continue talks
Labor
Micron continued negotiations with the Taoyuan union with support from the Taoyuan City Government, Focus Taiwan reported. No outcome was announced.
Micron suspends Fab 11E construction
Corporate
Bloomberg reported that work on Micron's $3 billion–$4.5 billion Taoyuan plant had all but stopped except for minor safety work, and that Micron had notified local officials and suppliers. Micron said current Taiwan production lines are operating normally.
October 2026
Micron pays three-part bonus to 4,300 Taiwan workers
Corporate
Micron paid an annual performance bonus of 7.5 to 12.5 months of salary, a mass-production bonus equal to 20% of annual pay and a one-time NT$1,000,000 payment to about 4,300 production-line staff in Taiwan. About 700 of them ended the fiscal year with total compensation above 60 months' salary.
Taoyuan talks end without agreement
Labor
A second round of talks between Micron and the Taoyuan union ended with no deal. Union deputy representative Yang Cheng-chih said management would not disclose profit-sharing figures as a share of operating profit. The next session is set for November 6.
Taoyuan talks postponed to October 27
Labor
A negotiating session originally set for October 23 was moved to October 27 because of a typhoon, according to a report on October 26.
Taoyuan union says Micron is trying to divide workers
Statement
The union said some Taichung members had started a petition to withdraw their union's negotiating authorization and urged Micron to answer its four demands.
Taoyuan strike ends; members reject Micron offer
Labor
The 24-hour walkout ended at 9 a.m. with no confirmed production disruption. A union survey found 1,633 of 1,637 voting members opposed Micron's proposal.
Taoyuan union begins 24-hour strike
Labor
Eleven union leaders started a 24-hour strike outside Micron's Taoyuan plant at 9 a.m. More than 2,000 workers had been expected to join, but reports described only a handful on the picket line.
Micron unveils global quarterly profit-sharing bonus
Corporate
Micron said employees worldwide would get a quarterly bonus tied to profit from fiscal 2027, half in cash and half in stock. In Taiwan it also raised pension contributions from 8% to 10%, increased shift allowances and added three days of paid leave.
Micron, Taichung union sign agreement
Labor
Micron and the Taichung union sign a labor agreement and withdraw from mediation set for October 22. Terms undisclosed.
Taoyuan talks at city government end without agreement
Labor
Micron and the Taoyuan union met at the Taoyuan City Government. The labor ministry later confirmed no agreement was reached.
Taoyuan union announces one-day strike
Statement
Taoyuan union schedules a warning strike for October 22, timed to coincide with Taichung mediation.
Taoyuan union authorizes strike
Labor
1,994 of the 2,012 members who voted backed strike action at Micron's Taoyuan plant.
September 2026
Taoyuan mediation fails
Legal
Mediation between Micron and the Taoyuan union ends without agreement over bonuses and profit-sharing.
May 2026
Samsung averts strike with 10.5% payout
Corporate
Samsung Electronics settles with its union, setting aside 10.5% of chip-division operating profit for bonuses.
2025
SK Hynix sets 10% profit-sharing formula
Corporate
SK Hynix agrees to allocate 10% of annual operating profit to profit-sharing bonuses, removing a payout cap.
Scenarios
1
Micron and Taoyuan union reach settlement
Likely
Resolves by End of 2026
Discussed by: Reuters, Financial News
The one-day action is a warning strike, not a break in talks; the Taoyuan union said it would sign if Micron made an acceptable proposal. Taiwan's labor ministry is pressing both sides. A deal would likely land near the Samsung benchmark of 10.5% of operating profit or the undisclosed Taichung terms.
2
Strike escalates, disrupting memory production
Possible
Resolves by Jan 31, 2027
Discussed by: KB Securities, TrendForce
If the walkout extends past one day or spreads to Taichung, it hits DRAM and HBM output. Taoyuan handles about 22% of Micron's DRAM capacity, and Taiwan is over half of its production. KB Securities says disruption would strengthen Samsung and SK Hynix pricing power; TrendForce warns engineers leaving equipment maintenance could cut yields.
3
Micron adopts a formal profit-sharing formula
Possible
Resolves by Q1 2027
Discussed by: Taoyuan union, Taiwan Ministry of Labor
Beyond a one-off bonus, the union wants a permanent, transparent system tied to operating profit, like Samsung's 10.5% and SK Hynix's 10%. It asked for 15%; a settlement could land between 10% and 15%. A published formula would set a precedent for how Micron shares record profits with its Taiwan workforce.
4
Taoyuan strike ends after 24 hours without production disruption
Deadline passed (Oct 23, 2026)
Discussed by: TrendForce, Reuters
Eleven union leaders struck for 24 hours. TrendForce analyst Ellie Wang said a one-day action would likely have limited impact if maintenance and monitoring staff stayed on the job. The test is whether talks on October 23 produce a profit-sharing proposal or more workers join the action.
5
Taoyuan union widens its strike beyond 24 hours
Possible
Resolves by End of 2026
Discussed by: Wei Yu-ling, Taoyuan union secretary-general
Eleven officials struck for one day, and the union said the action was not meant to stop production. Secretary-General Wei Yu-ling warned that more workers could join future industrial action if Micron does not answer the union's four demands.
6
Micron puts a number on profit-sharing at November 6 talks
Deadline passed (Nov 6, 2026)
Discussed by: Taoyuan union deputy representative Yang Cheng-chih, Domino Theory
The union's main complaint is that Micron will not say what share of operating profit its bonus pool represents. Yang Cheng-chih said management cited U.S. securities exchange rules for refusing to disclose the figures. A published number, or a formula tied to operating profit, would be the clearest sign a settlement is near.
7
Micron restarts Fab 11E after a profit-sharing deal
Possible
Resolves by Q2 2027
Discussed by: Bloomberg, Focus Taiwan
Construction at Fab 11E stopped while Micron and the Taoyuan union remain in talks. A settlement on profit-sharing, or a decision to build elsewhere, would settle the plant's future.
Historical Context
2 moments from history that rhyme with this story — and how they unfolded.
1 of 2
May 2026
Samsung Electronics union settlement (May 2026)
Samsung averted a strike by its South Korean union over bonuses. The company agreed to set aside 10.5% of its chip division's operating profit for special bonuses, subject to profitability targets.
Then
Workers called off the planned strike.
Now
Set a public benchmark for profit-sharing tied to operating profit at a major memory maker.
Why this matters now
The Taoyuan union cites Samsung's 10.5% formula as the model it wants from Micron; the union's 15% demand sits above it.
2 of 2
2025
SK Hynix profit-sharing agreement (2025)
SK Hynix agreed to allocate 10% of annual operating profit to its profit-sharing bonus program, removing a cap on payouts.
Then
Created a standing formula for sharing record profits with workers.
Now
Became a second benchmark that Taiwan unions point to in their own negotiations.
Why this matters now
Alongside Samsung, it gives Micron's Taiwan unions a concrete comparison for what a memory maker can share.
