On August 12, according to industry chain news, Micron Technology (Micron) has initiated layoffs in its China division, primarily affecting domestic embedded team research and development, testing, andFAE/AE support departments, with employees in cities like Shanghai and Shenzhen being impacted.
In response, Micron stated: Given the continued weak financial performance of mobileNAND products in the market, and the slowdown in growth opportunities compared to otherNAND segments, the company will globally halt the development of future mobileNAND products, including the termination of UFS5 (Universal Flash Storage 5) development. Micron emphasized that this decision only affects the development of global mobileNAND products, and the company will continue to develop and support otherNAND solutions, such as SSDs and NAND solutions aimed at automotive and other end markets. Micron will also continue to develop and support the global mobile DRAM (memory chips) market and provide an industry-leading DRAM product portfolio.
Previously, Micron stated, “China is an important part of Micron’s global business. We recognize that China is not only one of the largest markets globally but also a significant engine for innovation and technological development. Over the past 20 years of investing in China, Micron has provided full-chain services in R&D, design, manufacturing, and technical support to help build China’s semiconductor ecosystem.”
Unlike the weak performance of theNAND market, Micron has benefited from strong sales of DRAM chips, with revenue expected to rise.
Recently, Micron raised its revenue forecast for the fourth quarter, primarily due to strong demand for artificial intelligence (AI) infrastructure, which has driven improvements in the prices of its high-bandwidth memory (HBM) and dynamic random-access memory (DRAM) products.
Micron estimates that revenue for this quarter will reach $11.2 billion, with a fluctuation of $100 million, higher than the previous forecast of $10.7 billion, with a fluctuation of $300. Adjusted earnings per share (EPS) are expected to be $2.85 with a fluctuation of $0.07, better than the original estimate of $2.50 with a fluctuation of $0.15. The adjusted gross margin is expected to be 44.5%, with a fluctuation of 0.5 percentage points, previously forecasted at 42%, with a fluctuation of 1 percentage point.
Micron noted in its statement that the revised forecast reflects “price improvements, particularly in the DRAM sector, as well as strong execution capabilities.”
In recent years, the company’s growth momentum has primarily come from high-bandwidth memory products that are essential for AI computing. These memory chips, based on stacked DRAM, are closely integrated with processors like those from Nvidia, significantly enhancing data processing efficiency. Due to the complexity of production and deployment, market supply remains tight, further driving up prices.
Bloomberg Intelligence analysts Jake Silverman noted in a report that Micron’s updated sales guidance indicates that DRAM business momentum continues to strengthen, and HBM is “significantly contributing” to the improvement of supply-demand balance driven by strong demand for Nvidia’s Blackwell and Blackwell Ultra chips.
The semiconductor industry has recently benefited from increased investments by major tech companies in AI data centers. In addition to Micron, other memory chip manufacturers are also experiencing a surge in demand for high-bandwidth memory due to its powerful data processing capabilities, making it a crucial pillar of AI infrastructure.
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