Why is Micron Stock Sinking Today

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Why is Micron Stock Sinking Today Nauman Khan Thu, November 5, 2026 at 1:00 PM EST 1 min read MU -14.33% SKHY -11.48% NVDA -8.56% SKHY -11.48% 005930.KS -7.57% This article first appeared on GuruFocus . Micron Technology ( NASDAQ:MU ) shares fell 5% Thursday morning after a labor dispute disrupted construction plans for a multibillion-dollar memory chip facility in Taiwan, raising questions about the timing of its next production expansion, Bloomberg reported. The company has largely stopped work on its proposed Taoyuan complex, which was designed to manufacture high-bandwidth memory (HBM) and dynamic random-access memory (DRAM). The project carried an estimated cost of $3 billion to $4.5 billion and was scheduled to begin operations in 2028. Warning! GuruFocus has detected 1 Warning Sign with SKHY. Is SKHY fairly valued? Test your thesis with our free DCF calculator. The delay comes as Micron competes with Samsung Electronics (SSNLF), SK Hynix ( NASDAQ:SKHY ) and China's CXMT for a larger share of the memory market. HBM is particularly important for artificial intelligence processors, including those used in Nvidia ( NASDAQ:NVDA ) systems. The disagreement involves employee compensation. Although Micron reached an agreement with a major union in October, some workers have challenged its terms, potentially prolonging negotiations. Taiwan remains an important manufacturing base for Micron, accounting for about 60% of its global DRAM output and a substantial portion of HBM production. The company told Bloomberg that its existing operations continue normally, while Taiwan's government said it was assisting with the investment plans.

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