Micron Technology shares moved sharply higher on Wednesday, reversing earlier losses as investors appeared to look past concerns about a potential labor strike at one of the company’s key manufacturing hubs in Taiwan.
Micron stock was trading nearly 4% higher after initially falling as much as 3% in pre-market trading.
Micron Workers Approve Potential Strike
Earlier in the session, a Taiwanese labor union representing Micron employees received authorization from its members to call a strike.
The dispute centers on the company’s employee bonus and profit-sharing structure.
According to the union, 1,994 members voted in favor of strike action. That represented approximately 99% of workers who participated in the ballot.
However, the timing and details of any possible strike have not yet been decided.
Taiwan Is Critical to Micron’s Chip Production
Taiwan represents an important manufacturing base for Micron.
The company produces DRAM and high-bandwidth memory chips in the country, both of which are increasingly important for artificial intelligence servers and data centers.
Any prolonged labor disruption could therefore create additional uncertainty for the global memory-chip supply chain.
High-bandwidth memory has become particularly important as demand for AI computing infrastructure continues to grow.
Union Still Hopes to Avoid a Strike
Despite receiving authorization for industrial action, the union said it remains willing to reach an agreement with Micron.
Workers are seeking a new profit-sharing proposal from the company before moving forward with a strike.
The union has also encouraged members to take October 19 off and participate in a rally in Taipei.
However, it emphasized that the planned demonstration would not officially constitute strike action.
Micron Employs Around 15,000 Workers in Taiwan
Micron has approximately 15,000 employees across its Taiwan operations.
Separate labor unions represent workers at the company’s facilities in Taoyuan and Taichung.
Negotiations between Micron and the Taoyuan union ended without an agreement in September.
Meanwhile, talks with the Taichung union are still ongoing.
Together, the two unions represent more than 80% of Micron’s workforce in Taiwan.
Investors Look Past Immediate Supply Risks
Despite the labor uncertainty, Micron shares recovered strongly during Wednesday’s trading session.
The rebound suggests investors currently view the risk of an immediate production disruption as limited.
However, the situation remains important because Micron plays a major role in the global memory semiconductor market.
Any extended strike affecting its Taiwan facilities could potentially disrupt production of DRAM and high-bandwidth memory chips at a time when AI-related demand remains strong.
