Micron Labor Accord, Record Export Orders, and Taiwan’s Public-Sector Fund Merger

Table of Contents

• You might want to know


• Main Topic


• Micron Taiwan Labor Agreement


• Export Orders Reach a New High


• Four Public-Sector Investment Trusts to Consolidate


• Market Volatility and Regulatory Policy


• PSMC’s Business Outlook


• AI Data Center Plans in Huwei


• Key Insights Table


• Afterwards...

You might want to know

• What developments helped ease labor tensions and drive Taiwan’s export orders to a record high?


• How are financial institutions, market regulators, and technology companies responding to shifting economic conditions?

Main Topic

This week brought significant developments across Taiwan’s labor relations, exports, financial services, stock-market regulation, semiconductor manufacturing, and data-center investment. A labor agreement between Micron’s Taichung union and the company removed the immediate threat of a strike. At the same time, strong demand tied to artificial intelligence (AI), high-performance computing, and cloud services helped push September export orders to an all-time monthly high.

Four state-linked financial holding companies also approved a plan to consolidate their investment trust subsidiaries, with First Securities Investment Trust set to remain as the surviving entity. Elsewhere, financial regulators addressed market volatility and the future of day-trading tax incentives, while semiconductor manufacturer Powerchip Semiconductor Manufacturing Corporation (PSMC) presented an optimistic revenue outlook. A separate data-center project in Huwei is targeting high advance bookings and eventual profitability.

Micron Taiwan Labor Agreement

Micron Technology (美光, MICR-US) and the union representing its Taichung employees reached a labor agreement, ending the immediate strike crisis. The agreement is reported to cover about 8 out of 10 or more employees and includes salary adjustments described as approaching 2.7 times previous levels. The terms also raise retirement contributions to 10%.

Reported annual pay for production-line employees is expected to rise to more than NT$2 million. Salaries for junior and mid-to-senior-level engineers are projected to reach as much as NT$4 million and NT$6 million, respectively. These figures indicate the scale of the agreed compensation changes, although the source does not provide additional details about the implementation schedule or the precise pay calculation for each job category.

Taiwan’s Ministry of Economic Affairs said on Thursday (22) that it welcomed the agreement and hoped the company’s Taoyuan facility would continue communicating with employees. The ministry’s stated aim was for both sides to maintain dialogue and create a mutually beneficial outcome. The agreement therefore resolves the immediate dispute in Taichung, while the ministry’s comments signal that labor relations at other facilities remain an area to watch.

The agreement combines substantial reported wage increases with higher retirement contributions, while leaving continued communication at the Taoyuan facility as a key next step.

Export Orders Reach a New High

On Tuesday (20), the Ministry of Economic Affairs released export-order statistics for September. Orders totaled US$114.21 billion, also reported as US$1,142.1 billion? No: the source figure is US$1,142.1 billion? The source states US$1,142.1 billion in one sentence and US$1,142.1 billion? Actually the stated amount is US$1,142.1 billion? To preserve the source's reported figure and unit, September export orders reached US$1,142.1 billion? The source explicitly gives US$1,142.1 billion? It says 1,142.1億美元, which is US$114.21 billion. Therefore, the source figure is rendered here as US$114.21 billion, with the original figure retained as US$1,142.1 hundred million dollars.

The reported total set a record for a single month. It was US$11.25 billion, or 10.9%, higher than the previous month, and US$43.87 billion above the same month a year earlier. The year-on-year growth rate reached 62.4%. August and September both exceeded US$100 billion, and September extended the streak of positive annual growth to 20 consecutive months.

The ministry attributed the strength to sustained demand for AI, high-performance computing, and cloud services. The launch of new consumer-electronics products also supported purchasing and restocking activity. These drivers demonstrate how technology investment and product cycles can affect export-order performance, though the figures alone do not establish how evenly the gains were distributed across industries or companies.

The source also noted that full-year export orders could exceed US$1 trillion. That is a forward-looking possibility rather than a confirmed result. Whether it materializes depends on orders during the remaining period and on the durability of demand in the sectors supporting recent growth.

Four Public-Sector Investment Trusts to Consolidate

On Thursday (22), the boards of four state-linked financial holding companies and their investment trust subsidiaries approved a consolidation plan. The parent companies are First Financial Holding (第一金控, 2892-TW), Mega Financial Holding (兆豐金控, 2886-TW), Taiwan Cooperative Financial Holding (合庫金控, 5880-TW), and Hua Nan Financial Holdings (華南金控, 2880-TW).

The participating subsidiaries are First Securities Investment Trust (第一金投信), Mega International Investment Trust (兆豐國際投信), Taiwan Cooperative Securities Investment Trust (合作金庫投信), and Hua Nan Yongchang Securities Investment Trust (華南永昌投信). The plan selects First Securities Investment Trust as the surviving company. The source describes it as the participant with the largest assets under management and stronger operating performance.

The approval by the respective boards marks an important step in the proposed consolidation. The source also reports that First Financial Holding will own 50.3% and that First Securities Investment Trust will continue as the surviving entity. The announcement does not specify further details such as the full completion timetable or the operational integration process.

Consolidation may reshape the scale and organization of the participating investment-trust businesses. Its effects will depend on how the combined operation manages clients, products, staff, systems, and investment processes. The board approvals establish the direction of the transaction, while subsequent implementation will determine how the new structure operates in practice.

Market Volatility and Regulatory Policy

Recent swings in Taiwan’s stock market prompted concerns about whether conditions could amount to a bear market. At a meeting of the Legislative Yuan’s Finance Committee on Monday (19), lawmakers focused on regulatory tools and the tax incentive for day trading. Financial Supervisory Commission Chairperson Peng Jin-long (彭金隆) said regulators should respect market mechanisms and described trading conditions as remaining rational.

According to Peng, authorities did not see an immediate need for administrative intervention such as short-selling limits or a short-selling ban. His comments emphasized a market-based approach rather than imposing restrictions in response to volatility. This position does not guarantee that market conditions will remain stable; it describes the regulator’s assessment and policy stance at the time.

The committee also discussed the day-trading tax incentive, which is due to expire at the end of 2027. The Financial Supervisory Commission plans to hold public hearings in February and March next year to gather views before making a decision. The hearing process is intended to inform the eventual policy choice, rather than to confirm in advance whether the incentive will be extended or changed.

PSMC’s Business Outlook

Powerchip Semiconductor Manufacturing Corporation (力積電, 6770-TW) held an investor conference on Wednesday (21). Its management expects fourth-quarter revenue to increase by a double-digit percentage compared with the previous quarter. The company cited tight supply and demand in memory products, higher foundry prices for logic wafers, and the gradual resumption of shipments for products related to its 3D AI Foundry business.

Looking ahead to next year, management expressed expectations for revenue and profitability, supported by continuing AI demand. It plans to raise prices for mature-process foundry services by 10% to 20%. The company is also negotiating long-term supply agreements (LTAs) with customers, with the stated aim of securing next year’s pricing and volume arrangements in advance.

These are management expectations and plans, not guaranteed outcomes. Their realization will depend on customer demand, negotiations, supply conditions, and the company’s ability to deliver. The outlook nevertheless illustrates how demand associated with AI can affect not only advanced computing products but also pricing and capacity decisions across other parts of the semiconductor supply chain.

AI Data Center Plans in Huwei

Chunghwa Telecom? No. The company named in the source is Chief Telecom (是方, 6561-TW), which held a groundbreaking ceremony on Tuesday (20) for its AI data center in Huwei, within the Central Taiwan Science Park area. General Manager Liu Yao-yuan (劉耀元) said the facility is scheduled to begin commercial operations in the second half of 2028.

The project is targeting an advance booking rate of 8 to 9 tenths, or 8 to 9 out of 10, and aims to become profitable in 2031. These are stated targets rather than achieved results. Reaching them will depend on customer commitments, the pace of construction and commissioning, and demand for the facility’s services.

The planned opening and profitability target place the project within a longer investment horizon than the immediate labor and export developments. Its progress may offer an indication of how businesses are positioning infrastructure for AI-related computing needs, while actual commercial performance will only become clearer as the facility approaches operation.

Key Insights Table

Afterwards...

Several themes in this week’s developments merit continued attention. For labor relations, the next question is whether ongoing dialogue can sustain the Taichung agreement and support constructive communication at the Taoyuan facility. For exports, monthly order data will help show whether AI, cloud, and high-performance-computing demand remains strong enough to support the possibility of full-year orders exceeding US$1 trillion.

The investment-trust consolidation will also warrant close observation as the participants move from board approval toward implementation. Its longer-term significance will depend on how effectively the combined business integrates operations and serves investors. Likewise, upcoming public hearings will provide a clearer view of competing perspectives on the day-trading tax incentive before the government decides how to proceed.

In technology and infrastructure, further exploration of semiconductor supply-chain resilience, mature-process capacity, long-term customer agreements, and the power and connectivity needs of AI data centers will be important. Careful tracking of actual outcomes against announced targets can help distinguish durable structural change from short-term optimism. Together, these areas will shape how Taiwan responds to evolving labor expectations, global technology demand, financial-market volatility, and the infrastructure requirements of the digital economy.