Micron and Intel plan to shut down their joint production of NAND flash memory from a Boise, Idaho, facility, and Micron plans to lay off about 15% of its workforce in another sign that the economic meltdown is taking its toll on some technology companies. (Read a story about how the down economy is affecting IT.)
The moves are a result of a combination of lowered customer demand and product oversupply in the market, Micron said in a statement.
Intel and Micron, through their IM Flash Technologies joint venture, were supplying NAND flash memory from Micron's Boise facility. The shutdown will reduce the joint venture's NAND flash production by about 35,000 wafers, in the factory using 200-millimeter manufacturing lines, per month. IM Flash Technologies also has a facility in Lehi, Utah, which has 300-millimeter manufacturing lines.
Micron's 15% workforce reduction will occur over the next two years and will primarily affect people who work in the Boise facility. According to Micron's Web site, the company has 22,600 employees worldwide.
Companies in the NAND flash market have struggled all year because of oversupply that has kept prices low. Despite the oversupply, some vendors including Hynix and Samsung have continued to build new factories that make NAND flash products, further exacerbating the problem.
Micron expects that expenses related to the restructuring will reach about $60 million. In a statement, the company's chairman and CEO said that Micron is in a strong position relative to competitors but that it is not immune to the difficult global economic conditions affecting the market.
Rss FeedRss Feed
The Leader in Network Knowledge
Partner Content
www.bmc.com
Gartner 2009 Magic Quadrant for Job Scheduling
Gartner has positioned BMC CONTROL-M in the Leaders Quadrant of their "2009 Magic Quadrant for Job Scheduling." The report assesses the ability to execute and completeness of vision of key vendors in the marketplace. Read a full copy today, courtesy of BMC Software.
Download whitepaper
Dell's SMART Approach to Workload Automation
Read a compelling case study by EMA, Inc. to learn how Dell uses BMC CONTROL-M to cut cost and increase productivity with workload automation.
Download whitepaper
Workload Automation Cost Savings 2 Minute Video
A major computer manufacturer uses BMC CONTROL-M and just four people to schedule and run over 85,000 jobs every month. By switching to BMC CONTROL-M, they more than quadrupled the workload without adding a single staff member. See how in this 2-minute video overview.
Go to video
Comment