TradingKey - In pre-market trading on October 21 US Eastern Time, as of press time, shares of Micron Technology (MU) stood at $916, up 2.22% from the previous trading day's close. New developments have emerged in the labor dispute between Micron Technology Taiwan and local unions regarding the strike originally scheduled for October 22.

[Source: TradingView]

According to Reuters, on October 21, Micron's Taiwan subsidiary and the union representing employees at the Taichung plant announced that both sides had reached an agreement on multiple issues and signed a collective bargaining agreement, deciding to withdraw the mediation arrangement originally scheduled for October 22. The specific terms of the agreement have not yet been disclosed, and both parties plan to brief their respective relevant employees in the coming days.

In addition, tech journalist Tim Culpan also mentioned this on the X platform.

[Source: X]

However, the agreement reached between labor and management at the Taichung plant does not mean a complete end to Micron's labor disputes in Taiwan. Another union representing employees at the Taoyuan plant had previously obtained strike authorization and plans to hold a one-day warning strike on October 22 to fight for clearer bonus arrangements and profit-sharing schemes. As of press time, the union has not confirmed whether it will proceed with the strike action.

The dispute primarily revolves around employee bonuses and a long-term profit-sharing mechanism. The Taoyuan union is demanding that 15% of Micron's operating profit be allocated to employees and criticized the current employee incentive plan for lacking transparency.

On September 11, Micron announced its fiscal year 2026 employee incentive plan, under which eligible Taiwan employees could receive a cash bonus of NT$1 million (approximately $30,800), but the union maintains that a one-time reward cannot replace a long-term profit-sharing mechanism.

In the strike authorization vote in early October, a total of 2,012 union members participated, with 1,994 voting in favor of the strike, representing approximately 99% of those who voted; calculated against the 2,258 eligible members, the support rate was 88.3%.

Micron has about 15,000 employees in Taiwan, including approximately 12,300 at the Taichung plant and nearly 3,000 at the Taoyuan plant, with cumulative investments exceeding NT$1.6 trillion. Taiwan is an important production base for Micron's DRAM and high-bandwidth memory (HBM), with relevant products widely used in AI servers and high-performance computing fields.

Among them, the Taichung plant is Micron's core manufacturing base in Taiwan, featuring advanced packaging and testing facilities that support the production of HBM and other DRAM products, playing a key role in meeting the growing memory demand for AI servers. The Taoyuan plant, located in the Hwaya Technology Park in Guishan District, Taoyuan City, is an important DRAM wafer fabrication base for Micron.

As AI demand continues to grow, if labor disputes affect production, it could exacerbate supply pressure on memory chips. As of now, public reports have not confirmed that this dispute has caused any production disruptions.

The upcoming focus is whether the Taoyuan union will proceed with the one-day warning strike originally scheduled for October 22, and whether both parties can reach a consensus on a long-term profit-sharing mechanism. Although an agreement has been reached at the Taichung plant, the dispute at the Taoyuan plant remains to be resolved.

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