Breaking: Micron to Cut China Staff, Halt Mobile NAND

On August 11, industry sources revealed that Micron began workforce reductions in its China operations, impacting R&D, testing, and technical support teams in cities such as Shanghai and Shenzhen.

In response, Micron confirmed it will discontinue future mobile NAND product development worldwide — including halting UFS5 projects — due to persistent market weakness and slower growth compared to other NAND segments.

The company emphasized that this move affects only mobile NAND development. Micron will continue advancing other NAND solutions for SSDs, automotive applications, and diverse end markets. Its global development and support for mobile DRAM will also remain, with a strong DRAM portfolio available to customers.

Micron recently raised its Q4 revenue forecast to $11.2 billion ± $0.1 billion, up from a prior estimate of $10.7 billion ± $0.3 billion. Adjusted gross margin expectations rose to 44.5% ± 0.5% from 42% ± 1%, reflecting stronger pricing — especially for DRAM products.

The company cited surging demand for high-bandwidth memory (HBM) chips used in AI data centers as a key driver, with orders climbing alongside major tech firms' AI infrastructure investments. Analysts note that supply constraints and AI growth have allowed Micron to improve pricing, marking a shift from historically slimmer margins in memory manufacturing.

Potential headwinds remain, such as U.S. tariffs of up to 100% on some imported chips, though these do not apply to products made — or planned to be made — in the U.S. In June, Micron announced it would increase U.S. investments by $30 billion, bringing its total to $200 billion.

Micron now expects adjusted Q4 earnings per share of $2.85 ± $0.07, up from a previous outlook of $2.50 ± $0.15.