In response to the recent layoffs in China by Micron, Micron has officially responded to the CFM flash memory market:
Given the continued weak financial performance of mobile NAND products in the market and the slower growth compared to other NAND opportunities, we will cease the development of future mobile NAND products globally, including terminating the development of UFS5.
Micron stated that this decision only affects the development of global mobile NAND products. Micron will continue to develop and support other NAND solutions, such as SSDs and NAND solutions for the automotive and other end markets.
Micron will continue to develop and support the mobile DRAM market globally, and provide an industry-leading DRAM product portfolio.
In recent years, as large technology companies have increased their investment in artificial intelligence data centers, orders for high bandwidth memory (HBM) chips from semiconductor manufacturers such as Micron have surged due to their powerful data processing capabilities.
The company currently expects quarterly revenue of $11.2 billion, with a fluctuation of $100 million, compared to the previous forecast of $10.7 billion, with a fluctuation of $300 million.
Micron also raised its adjusted gross profit margin forecast for the fourth quarter to 44.5%, with a fluctuation of 0.5%, compared to the previous forecast of 42%, with a fluctuation of 1%.
The company stated that the revised forecast reflects an improvement in pricing, particularly for dynamic random access memory or DRAM products.
Sumit Sadana, Chief Commercial Officer of Micron, said at an industry conference on Monday, "We focus on all different end markets around the world, and price trends have been strong. We have achieved great success in raising prices
EMarketer analyst Jacob Bourne stated that supply constraints in HBM production and strong demand for artificial intelligence have enabled Micron to set higher prices for its products, representing a shift in memory chip manufacturers' history towards thinner profit margins.
In June of this year, Micron announced that it would increase its investment in the United States by $30 billion, bringing the total to $200 billion
Subscribe And Save Stay in touch.
