TAIPEI (Taiwan News) — Computer memory producer Micron Technology, Inc. plans to base its Asia Pacific logistics center in Taiwan, the Ministry of Economic Affairs (MOEA) said Friday (July 28).
The American company is discussing taxation and workers’ rights issues with the government, but the MOEA estimated a solution will be reached by the end of the year, per CNA. Separately, Micron is also introducing more advanced chip testing technology at a plant in Taichung City, the MOEA said.
The change is related to the launch of high-bandwidth memory (HBM) addressing the rapid development of AI. The Taichung project will also allow Micron to cooperate closer with key supply chain operators, including Taiwan Semiconductor Manufacturing Co. (TSMC), according to the MOEA.
The key obstacle with the plan for a logistics center, which was first broached in 2018, is that it would come under Micron’s factory in Taoyuan City. As the plant pays higher fees to workers than the one in Taichung City, a dispute has arisen between the local labor unions, the MOEA said.
One possible solution would be for Micron to outsource the logistics work, or for the company to merge its Taoyuan and Taichung operations into one new company. In addition to Micron, Nvidia Corporation is also planning a logistics center in Taoyuan City by the end of the year.
Micron said later that no final decision had been reached on the logistics center plan and on its location, CNA reported. Some media reports had named Taichung as the most likely site, but the company denied it had made a choice.
