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Micron to close 200mm Boise NAND flash fab
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Continued over capacity in NAND flash production coupled to slowing demand has forced ASPs to fall below production costs, especially for production of NAND on 200mm wafers. Micron Technology has followed the lead set by Hynix Semiconductor last month in announcing a 200mm fab closure. Micron said that its Boise facility will close with the loss of jobs. The closure will also result in approximately 35,000 wafers (200mm) per month reduction in capacity. The restructuring will also see a reduction in its workforce of 15 percent, carried out over a two year period.
“Micron is in a strong position relative to our competitors, as evidenced by our balance sheet and cash flow, but we are not immune to the difficult global market conditions that are affecting us all,” said Steve Appleton, Micron Chairman and CEO. “Operation shutdowns and related workforce reductions are always painful, but we are pursuing these actions to maintain the competitiveness of the company.”
The cost of the restructuring was put at $60 million.