Micron Shares Rise 4% Despite Taiwan Strike Risk

Micron Technology shares reversed early losses on Wednesday, climbing nearly 4% as investors appeared to shrug off concerns about a potential worker strike at one of the chipmaker’s major manufacturing operations in Taiwan.

The stock had fallen as much as 3% in pre-market trading after a Taiwanese labor union representing Micron employees authorized strike action amid a dispute over the company’s employee bonus and profit-sharing system.

The union, representing workers at Micron’s facilities in Taoyuan in northern Taiwan, said 1,994 members voted to authorize a strike. That represented 99% of workers who participated in the ballot. However, details surrounding any potential labor action, including when a strike could begin, remain under discussion.

Taiwan is an important manufacturing hub for Micron, particularly for DRAM and high-bandwidth memory, or HBM, chips. These memory products are increasingly important for artificial intelligence servers and data centers, meaning prolonged production disruptions could affect global memory-chip supplies.

Despite receiving authorization for industrial action, the union said it hopes Micron will offer employees an acceptable profit-sharing proposal before workers resort to a strike.

Union members are also being encouraged to take a day off on October 19 to participate in a rally in Taipei. The union stressed that the planned demonstration would not constitute official strike action.

Micron employs approximately 15,000 workers across Taiwan, making the island a critical part of the U.S. semiconductor company’s global manufacturing network. Separate unions represent employees at Micron’s Taoyuan and Taichung facilities.

Negotiations between Micron and the Taoyuan union have already faced difficulties, with mediation ending in September without an agreement. Meanwhile, negotiations with the Taichung union remain ongoing.

Together, the Taoyuan and Taichung unions represent more than 80% of Micron’s Taiwan workforce, keeping labor negotiations in focus as demand for memory chips used in AI infrastructure continues to grow.