Micron Technology has suspended construction of its planned Fab 11E facility in Taoyuan, Taiwan. The project was budgeted at $3 billion to $4.5 billion.
The halt follows a prolonged labor dispute over employee compensation and profit-sharing. Micron has reportedly informed Taiwanese officials and suppliers, citing growing uncertainty around negotiations.
Fab 11E was scheduled to begin operations in 2028, producing advanced DRAM and high-bandwidth memory (HBM) for the artificial intelligence sector. The delay could affect Micron’s ability to compete with Samsung and SK Hynix as demand for AI-related memory chips grows.
Micron said its existing manufacturing operations in Taiwan continue as normal. They account for about 60% of the company’s global DRAM output.