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Despite recently raising its Q4 FY25 guidance on the back of strong DRAM prices, Micron has reportedly begun layoffs in its China operations as of August 11, according to Chinese media outlets ijiwei and EETimes China.
While the full extent of the layoffs is still unclear, the reports suggest the cuts mainly affect domestic embedded teams involved in R&D, testing, and support roles like FAE and AE, impacting employees across major cities including Shanghai and Shenzhen.
Industry insiders see this personnel adjustment as a clear sign of Micron’s ongoing contraction in the Chinese market amid shifting business dynamics, as per the reports.
In response, Micron stated that due to the continued weak financial performance of mobile NAND products and slower growth compared to other NAND opportunities, it will halt global development of future mobile NAND products, including the termination of UFS5 development, as per ijiwei.
Micron emphasized that this decision only affects mobile NAND product development worldwide. The company will continue to develop and support other NAND solutions, such as SSDs and NAND products for automotive and other end markets, it said.
Micron’s latest annual report shows China’s sales share dropped to 12.1% in 2024 from 14% in 2023, lagging well behind the U.S. at 52.4% and Taiwan at 18.7%.
As highlighted by eeNews Europe, Micron held a groundbreaking ceremony for a new packaging and testing facility at its Xi’an site in China in April, 2024.
The $600 million (4.3 billion yuan) project was announced in June 2023, and is slated to begin production in the second half of 2025, the report added.
At that time, Micron CEO Sanjay Mehrotra stated that China remains a vital part of its global business. The company acknowledged China as not only one of the world’s largest markets but also a key driver of innovation and technology. Over more than 20 years of investment, Micron has supported China’s semiconductor ecosystem through end-to-end services in R&D, design, manufacturing, and technical support, as per its press release.
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(Photo credit: Micron)
