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Just two weeks ago, Micron Technology (MU) was facing a major labor dispute in Taiwan. On Oct. 7, workers at its Taoyuan facilities voted to authorize a strike, with 1,994 workers, or 99% of those who voted, backing the move.
The Taoyuan and Taichung unions wanted a one-time fiscal 2026 bonus equal to about 83 months of pay, along with quarterly bonuses funded by 15% of operating profit beginning in fiscal 2027. They said similar profit-sharing arrangements are already used by Samsung Electronics and SK Hynix (SKHY). Taiwan is Micron Technology’s largest manufacturing base, so a strike could have disrupted chip supply while AI customers are already competing for limited memory capacity.
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But the situation changed quickly. According to an Oct. 21 report, Micron Technology’s Taiwan unit reached a labor deal with the union representing workers at its Taichung site. So, how much does this agreement change the outlook for MU investors? Let’s take a closer look.
Inside Micron’s Taiwan Labor Agreement
Micron Memory Taiwan and the union representing workers at its Taichung site said on Oct. 21 that they had reached a labor agreement. Both sides then canceled a mediation meeting planned for Oct. 22. The terms have not been made public, and employees are expected to get more details in the <a href="https://myappsplus.com/ios-27-2-three-new-features-coming-to-your-iphone-next-week/” title=”iOS 27.2: Three new features coming to your iPhone next week”>coming days.
Still, the deal only covers the Taichung union. The Taoyuan union remains in dispute after it rejected Micron Technology’s earlier offer of a NT1 million ($31,386) cash payment as part of a package worth at least NT1.7 million($53,356) per worker. That union still has approval to strike.
Investors welcomed the Taichung deal, with MU shares rising more than 2% in premarket trading on Wednesday. The agreement lowers the risk of a work stoppage at one important Taiwan site, but Micron Technology still needs to reach a deal with the Taoyuan union to fully put the labor issue behind it.
The Fundamentals Behind Micron’s Stock
Micron Technology posted strong results in its fiscal 2026 fourth quarter, which ended Sept. 3. Revenue reached a record $54.23 billion, up 31% from the prior quarter and 379% from $11.32 billion a year earlier. GAAP net income was $37.70 billion, or $32.87 per diluted share, while adjusted earnings came in at $33.42 per share. Micron Technology generated $43.97 billion in operating cash flow and spent $10.77 billion on capital expenditures, ending the year with $73.48 billion in cash and investments. For fiscal 2027’s first quarter, management expects $61.5 billion in revenue and adjusted EPS of $38.15.
