Micron: Taiwan Strike Authorization Clouds Taichung Plant Opening as 2027 HBM Sells Out
Summary
- • Micron opened its AATT2 assembly and test facility in Taichung, Taiwan on Oct 15
- • Executive says all planned 2027 HBM capacity is already sold out
- • Taoyuan union won 99% strike authorization over profit sharing; no strike date set
- • Shares fell about 3% on Oct 16 and over 10% on the week amid a chip-sector pullback
Details
Micron opened its new advanced assembly and test facility (AATT2) in Taichung, Taiwan on Oct 15, 2026
The site adds back-end packaging and test capacity in Taiwan, which accounts for roughly 50-60% of Micron's production.
COO Manish Bhatia said Micron's entire planned 2027 HBM capacity is sold out
High-bandwidth memory is the stacked DRAM used in AI accelerators; a sold-out year signals strong customer commitments.
HBM demand is expected to outpace the broader DRAM market through 2028
This is management's outlook, not an independent forecast.
Taoyuan union (about 2,400 of 3,000 employees) secured strike authorization on Oct 7
99% of the 2,012 members who voted approved it. The dispute concerns profit sharing, and no strike date has been set.
Union seeks 15% of operating profit paid quarterly and rejected an offer of up to 68 months' pay
The gap between a quarterly profit-share formula and the company's pay-multiple offer is the core of the dispute.
Larger Taichung union (about 11,000 members) is in mediation, with the next session on Oct 22
A Taoyuan rally is planned for Oct 19. A failed mediation would widen the labor risk.
Taiwan President Lai Ching-te urged sincere negotiation at the Oct 15 opening
The comment shows the dispute has drawn government attention given Taiwan's role in the chip supply chain.
Micron shares fell about 3% on Oct 16 and more than 10% over the week
The decline came during a broader semiconductor pullback, with reported investor concerns about Chinese competition and pricing sustainability.
Infrastructure = facility buildout, Stat = capacity figure, Market Impact = demand and stock effects, Industry Update = labor developments, Financials = pay terms, Policy = government stance
What This Means
Micron says demand for its AI memory is booked through 2027, yet investors sold the stock because of risks around it. A possible strike at its Taiwan operations, which make up more than half of its production, could threaten delivery of that sold-out capacity. No strike date is set, and mediation continues, so the outcome is uncertain.