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Micron Technology closes NAND flash factory

Negative trends in the global economy and the most difficult situation in the memory market could not but affect the fate of manufacturers of this type of product. The process of absorption of smaller players by large players and the withdrawal from the market of companies that do not have a sufficient margin of safety has begun. In particular, it is known about Samsung’s attempt to buy Sandisk, which, however, has not yet been crowned with success. In addition, the other day there was information that Toshiba intends to buy Spansion. There is talk of another major purchase – Micron Technology is credited with plans to take over Qimonda. The fate of this deal is not yet completely clear, but it became reliably known about another step by Micron Technology – the company announced its decision to “restructure memory production”.

The combination of declining demand and overproduction has resulted in NAND flash prices dropping to “well below manufacturing costs,” especially in 200mm factories, according to an official press release. As a result, it was decided that IM Flash Technologies (IMFT), a joint venture between Micron and Intel Corporation, would discontinue the production of this memory at Micron’s factory in Boise, USA. Shutdown of NAND production will reduce IMFT production by about 35 thousand 200 mm wafers per month.

As part of the restructuring, Micron’s staff will be reduced by 15% in the next two years. The bulk of the dismissed will be employees who previously worked at the factory in Boise.

Factory closure costs are estimated at 60 million. Doll. At the same time, according to the company’s estimates, the positive effect of this step will amount to 175 million. Doll.

Source: Micron Technology

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