Due to an ongoing labor dispute, Micron Technology has effectively suspended its plan to build a new memory chip plant in Taoyuan, a region of China's Taiwan. The project, with an investment budget of US$3 billion to US$4.5 billion, was originally scheduled to begin production in 2028 and aimed to produce high bandwidth memory (HBM) and DRAM using ASML's advanced equipment. At present, only a small amount of safety maintenance work remains on site, and subsequent construction will be frozen. The dispute stems from employees' demands to share in the profit growth brought by the AI boom. The Taoyuan labor union has put forward demands including allocating 15% of operating profit to global employees and issuing all-cash bonuses. Although Micron reached an agreement with the Taichung labor union in October, some employees are dissatisfied with the terms, and the Taoyuan labor union is expanding its organizational scale to push for renegotiation. China's Taiwan region contributes about 60% of Micron's DRAM output and is also an important HBM production base for the company. The suspension of the project may affect Micron's long-term local capacity expansion layout and add uncertainty to the AI memory chip market, where supply is already tight. Micron stated that its existing local operations are normal and that it will ensure customer business continuity, but did not directly respond to the suspension of the Taoyuan project. The economic department of China's Taiwan region said it will assist both sides in resolving their differences and promote the implementation of the investment plan.