Micron Technology

The 24-hour warning strike at Micron Technology in Taoyuan has been temporarily suspended; no agreement on compensation was reached and nearly 70% of union members rejected the current offer. The union is demanding 15% of global operating profit as employee participation, while Micron has proposed a global bonus program instead that would apply from 2027 in addition to the annual incentive and would pay out half in cash and half in stock. Negotiations will continue on October 27; in the meantime the stock has made a slight recovery, gaining about two percent. » Altro su deraktionaer.de

Employees at Micron’s Taoyuan plant walked out for a 24-hour strike to push for a permanent profit-sharing model modeled on Samsung and SK Hynix. Unions are demanding structural wage increases and regular bonuses after a one-time bonus of one million Taiwan dollars (about €27,000) was rejected. Micron is negotiating at two sites in parallel, has agreed pay increases in Taichung and emphasizes dialogue, while President Lai Ching-te has called for an amicable settlement. Effects on DRAM production and thus on the supply of HBM chips important for AI are currently unclear. » Altro su faz.net

D.A. Davidson raised its price target for Micron to $3,000 and argues that AI-driven demand will permanently revalue memory chips higher. The consensus is much lower (median target about $1,586), while Micron recently reported record revenues, high margins and multi-year customer contracts. Offsetting the optimistic view are massive investments in new capacity due to deliver from 2027 and possible competition from China (CXMT), which could create margin pressure. Investors should weigh the prospect of persistently high prices against the risk of a normalization in price dynamics and the high market expectations. » Altro su finanzen.net