The Zhitong Finance App learned that Micron Memory Taiwan (Micron Memory Taiwan), a subsidiary of Micron Technology (MU.US) in Taiwan Province of China, and its Taichung factory trade union said on Wednesday that the two sides had signed a labor agreement covering multiple issues, and the two sides withdrew from the mediation originally scheduled for October 22 as a result.
The joint statement did not disclose the terms of the agreement; it only stated that the company and the trade union will separately communicate details to affected employees in the next few days.
Headquartered in Idaho, Micron is the third-largest memory chip manufacturer in the world and has around 15,000 employees in Taiwan Province of China. Taiwan Province is Micron's key production base, producing DRAM and high-bandwidth memory chips for AI servers.
Any disruption to Micron's operations in Taiwan could affect the already tight global supply of memory chips. The artificial intelligence (AI) boom has boosted memory chip manufacturers such as Micron, Samsung Electronics, and SKHY.US (SKHY.US), while also intensifying employees' demand for a larger share of profits.
The agreement reached with the Taichung Trade Union — which represents the employees of Micron's largest operating base in Taiwan — came out just as another trade union representing Taoyuan employees plans to hold a one-day warning strike the next day, with claims involving bonuses and profit sharing.
The Taoyuan Trade Union did not immediately respond to a request for comment on whether it is still planning to go ahead with Thursday's strike. According to reports, the strike was originally scheduled to be held at the same time as the mediation negotiations.