Micron Opens HBM Facility as Strike Risk and Chip Sell-Off Drag Shares

On October 15, Micron opened its second advanced assembly and test facility (AATT2) in Taichung, Taiwan. The facility is intended to expand production capacity for high-bandwidth memory (HBM) chips used in the AI industry.

The expansion comes amid a labor dispute. A Taoyuan union has authorized a strike over bonus calculations, and Taiwanese President Lai Ching-te has urged both sides to negotiate and avoid a work stoppage.

Micron shares traded lower, extending a recent decline. Factors cited included the potential strike, competition from Chinese rival ChangXin Memory Technologies (CXMT), and a broader semiconductor-sector sell-off.

Investors are also reportedly concerned that higher borrowing costs could curb spending on AI infrastructure and reduce demand for memory chips.