Micron Technology to Restructure Memory Operations

Tag : memory
In response to a challenging global environment for technologyproducts, Micron Technology, Inc., (NYSE:MU) today announced arestructuring of its memory operations. The combination of declining customer demand and product oversupplyin the marketplace has driven selling prices for NAND flash memorysignificantly below manufacturing costs, particularly for 200millimeter (mm) manufacturing lines. As a result, IM FlashTechnologies (IMFT), a joint venture between Micron and IntelCorporation, will discontinue the supply of NAND flash memory fromMicron's Boise facility. The NAND operation shutdown will reduceIMFT's NAND flash production by approximately 35,000 wafers (200mm)per month. As part of the restructuring, Micron plans to reduce its globalworkforce by approximately 15 percent during the next two years.The majority of the workforce reductions, which will begin with avoluntary program, will occur in Boise as a result of the NANDoperation shutdown. Micron is committed to assisting employeesaffected by the workforce reductions and is providing severance andoutplacement services. "Micron is in a strong position relative to our competitors, asevidenced by our balance sheet and cash flow, but we are not immuneto the difficult global market conditions that are affecting usall," said Steve Appleton, Micron Chairman and CEO. "Operationshutdowns and related workforce reductions are always painful, butwe are pursuing these actions to maintain the competitiveness ofthe company." Cash restructuring and other related expenses are anticipated to beapproximately $60 million, and the next year's cash operatingmargin benefit is expected to exceed $175 million. About Micron Micron Technology, Inc. is one of the world's leading providers ofadvanced semiconductor solutions. Through its worldwide operations,Micron manufactures and markets DRAMs, NAND flash memory, CMOSimage sensors, other semiconductor components, and memory modulesfor use in leading-edge computing, consumer, networking, and mobileproducts. Micron's common stock is traded on the New York StockExchange (NYSE) under the MU symbol. To learn more about MicronTechnology, Inc., visit www.micron.com. Micron and the Micron orbit logo are trademarks of MicronTechnology, Inc. All other trademarks are the property of theirrespective owners. This press release contains forward-looking statements regardingreductions in NAND production levels, the number of employeesaffected by the restructuring of the Company's memory operations,cash restructuring and other related expenses and the next year'scash operating margin benefit. Actual events or results may differmaterially from those contained in the forward-looking statements.Please refer to the documents the Company files on a consolidatedbasis from time to time with the Securities and ExchangeCommission, specifically the Company's most recent Form 10-K andForm 10-Q. These documents contain and identify important factorsthat could cause the actual results for the Company on aconsolidated basis to differ materially from those contained in ourforward-looking statements (see Certain Factors). Although webelieve that the expectations reflected in the forward-lookingstatements are reasonable, we cannot guarantee future results,levels of activity, performance or achievements. We are under noduty to update any of the forward-looking statements after the dateof this report to conform to actual results.