Micron Stops Future Mobile NAND Flash Development, Focuses on High-Margin Sectors

Micron has announced the halt of future mobile NAND Flash development, shifting focus to higher-margin areas like SSDs and HBM. This move addresses market competition and sluggish demand, reallocating resources to more profitable sectors, enhancing competitiveness.

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Key Highlights:

• Micron has announced the cessation of future mobile NAND Flash development due to weak market demand and slow growth.
• This includes halting UFS 5.0 plans, while maintaining current product supply; other NAND Flash product lines remain unaffected.
• Micron's conservative capacity planning helps concentrate resources on high-profit areas, boosting competitiveness.
• Decision factors include:
  • Intensified competition in the mobile market, especially in China, due to local brands and government policies.
  • Sluggish global smartphone shipments, reducing mobile NAND Flash margins.
  • Desire to allocate resources to high-margin areas like client/enterprise SSDs and high-bandwidth memory.
• Micron's FY3Q25 financial report shows an increase in NAND Flash revenue, but declining margins, with SSDs being the main growth driver.
• The company's strategy focuses on high-value applications, avoiding the overly competitive mobile NAND Flash market, aiming to strengthen its position in the AI and data center markets.