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Friday, October 10, 2008
Micron to Restructure Memory Operations


In response to a challenging g

The combination of declining customer demand and product oversupply in the marketplace has driven selling prices for NAND flash memory significantly below manufacturing costs, particularly for 200 millimeter (mm) manufacturing lines. As a result, IM Flash Technologies (IMFT), a joint venture between Micron and Intel Corporation, said that it would discontinue the supply of NAND flash memory from Micron?s Boise facility. The NAND operation shutdown will reduce IMFT?s NAND flash production by approximately 35,000 wafers (200mm) per month.

As part of the restructuring, Micron plans to reduce its global workforce by approximately 15 percent during the next two years. The majority of the workforce reductions, which will begin with a voluntary program, will occur in Boise as a result of the NAND operation shutdown.

"Micron is in a strong position relative to our competitors, as evidenced by our balance sheet and cash flow, but we are not immune to the difficult global market conditions that are affecting us all," said Steve Appleton, Micron Chairman and CEO. "Operation shutdowns and related workforce reductions are always painful, but we are pursuing these actions to maintain the competitiveness of the company."


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