Micron shares gain as investors brush off Taiwan labor strike fears

Investing.com -- Micron Technology shares have reversed earlier losses and are trading nearly 4% higher on Wednesday, as investors appear to brush off fears of a possible strike at one of the company’s key manufacturing sites in Taiwan.

Earlier on Wednesday, a Taiwan union representing the company’s workers secured authorization from its members to strike over a dispute concerning the company’s bonus scheme, sending the stock as much as 3% lower in pre-market.

The union, which represents workers at Micron’s operations in the northern city of Taoyuan, said 1,994 members, or 99% of those casting ballots, voted in favor of a strike. Details of any strike, including its timing, remain under discussion.

Taiwan serves as a production center for Micron’s DRAM and high-bandwidth memory chips, which are key components in AI servers. A labor action could affect supply in the memory-chip market.

The union said it still hoped the company would come up with a profit-sharing proposal for employees before resorting to a strike. The union is encouraging members to take a day off on October 19 to join a rally in Taipei, which it said would not be a strike.

Micron employs about 15,000 people in Taiwan, with separate unions representing workers at its Taoyuan and Taichung operations. Mediation with the Taoyuan union ended without agreement in September, while the Taichung union remains in negotiations. Together, the two unions represent more than 80% of Micron’s Taiwan workforce.

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