I bought a PlayStation 5 a few years ago, and I figured I’d eventually need more storage, especially when games like Grand Theft Auto 6 showed up. Games kept getting bigger, but a 2TB expansion drive seemed like an upgrade that could wait.
Back in 2023, a WD Black SN850X 2TB SSD, according to TechRadar, could be scooped up for around $140. I recently checked again and was stunned that a 2026 price tracker listed that same drive at $429. That’s roughly 206% more for the same storage capacity.
I always though that storage would get cheaper over time. Apparently not.
AI data centers are clearly at the heart of the issue. Their demand for memory and storage is reshaping supply, even though a console SSD uses different chips than those that power high-bandwidth memory in AI servers.
Micron Technology (MU) has arguably been the biggest beneficiary from that boom. Its COO said the planned 2027 capacity at a new Taiwan facility is already sold out.
Yet workers at another Micron site have authorized a possible strike over profit sharing, prompting an appeal from Taiwan’s president.
That’s a complication for investors betting on Micron’s next big move.
Micron’s 2027 AI-memory capacity sells out as Taiwan workers weigh a strike
Micron has found itself in a rather unusual spot. Unlike any other memory cycle, its customers are now lining up for chips before its newest factory finishes ramping up.
“We have already sold out all the capacity for 2027 that this factory will build,” said COO Manish Bhatia at the Oct. 15 opening of an advanced assembly and testing facility in Taichung, Taiwan, according to Tech Times.
Bhatia said he also expects high-bandwidth memory demand to surpass the broader DRAM market through 2028.
More Wall Street:
- Nvidia and Micron are about to lord their successes all over Wall Street
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- Wall Street elites will pocket windfall from record $46 billion profits
HBM has become a high-value resource as it powers AI systems from companies such as Nvidia. Micron previously forecasted that the global HBM market could grow from approximately $35 billion in 2025 to $100 billion by 2028, nearly tripling in three years.
Meanwhile, the company expects conventional DRAM shipments to grow in the low-20% range annually through 2028, with HBM growing even faster.
Yet the celebration came with an uncomfortable complication. Taiwan President Lai Ching-te used the same event to urge negotiations between Micron and its employees, TaiwanPlus noted.
“Only by creating harmonious labor relations can both sides win,” Lai said.
On Oct. 7, Micron’s Taoyuan workers’ union authorized possible strike action after a dispute over bonuses and profit sharing. Of the members voting, 1,994 supported the move, representing roughly 99% of votes cast. No strike date has been set.
It’s important to understand that the vote was at Taoyuan; the newly opened, sold-out facility is in Taichung, where a separate union remains in negotiations.
Workers are planning an Oct. 19 rally in Taipei, which organizers say is not a strike. Another mediation session involving the Taichung union is scheduled for Oct. 22, Reuters reported.
Now the question shifts to whether the company can expand production and maintain labor stability while meeting those commitments.
So why are employees considering a strike during such an extraordinary profit boom?
Micron workers seek 15% of profits after a record $85 billion year
Micron’s union dispute has less to do with a bigger bonus and more to do with a predictable share of the money pouring into the AI memory business.
At an Oct. 7 news conference in Taipei, as reported by 24/7 Wall St, Taoyuan union chairman Jerry Lin put it plainly: “What we want is to establish an open and transparent profit-sharing system.”
The union argues that Micron’s existing Incentive Pay Plan lacks transparency and favors executives. It wants a permanent mechanism allocating 15% of the company’s operating profit to employees, rather than relying on one-time rewards.
Interestingly, Micron has offered substantial compensation. In September, it announced a NT1.7 million in cash compensation, TrendForce confirmed. The union rejected the package because it didn’t settle the underlying disagreement.
And the sums involved explain why negotiations are so contentious.
Micron reported $133.19 billion in fiscal 2026 revenue, $84.97 billion in net income, and $99.34 billion in operating income. By my calculation, 15% of that operating profit would equal approximately $14.9 billion.
For now, a strike remains a possibility, and a prolonged standoff could complicate workforce planning or production if workers eventually walk out. That said, there’s no verified estimate of how much chip output would be affected, and Taoyuan’s strike vote shouldn’t be confused with negotiations at Taichung.
And shareholders have plenty riding on the outcome.
After a 226% rally, Micron’s next stock gains hinge on execution
Micron shareholders have enjoyed a remarkable ride.
Through Oct. 16, MU stock had gained about 215% year to date, even after retreating nearly 26% from its 52-week high, according to Seeking Alpha data.
Moreover, Micron stock is now trading at around 5-times forward non-GAAP earnings, which is around 92% lower than its five-year average and approximately 3.80-tims forward sales estimates.
So Micron is now trading a lot more attractively, and there’s a good case for more upside, considering it has signed 26 strategic customer agreements and said more than 75% of its expected 2027 output is committed. Still, sold-out capacity doesn’t guarantee steady margins.
Micron’s $35.16 billion share-repurchase authorization could help, too, Investing.com noted. But repurchases can’t start before Dec. 9 under its CHIPS Act agreements and remain subject to conditions.
Meanwhile, labor tensions in Taiwan, competition from Chinese chipmakers, cooling AI spending, or falling memory prices could switch up the math.
I’ll be watching the Oct. 19 labor rally, Oct. 22 mediation, production updates, memory prices, and Micron’s next earnings guidance.
Micron has customers. Now it must deliver profitably, while keeping workers and shareholders on board.
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