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Micron cuts capex with Singapore NAND fab remaining on hold
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Micron Technology has said that its capital expenditure for fiscal 2009 will be in the range of $1.0 and $1.3 billion, down from $2.9 billion in fiscal 2008, which just ended and down from $4.1 billion in 2007. The company also said that of the CapEx plan for 2009, approximately 15 percent of the total would come from its manufacturing partners.
A key part of the CapEx reduction is the pushing-out of tool installing and ramping its new 300mm NAND flash fab in Singapore until sometime after the third quarter of 2009. The fab had previously been put on hold, but was thought by industry observers to be a short-term decision, perhaps only for a couple of quarters.
However, during a conference call with financial analysts, Micron’s CFO, Ronald Foster, noted that due to Micron’s strong balance sheet it was keeping its CapEx plans flexible.
Micron executives said that the vast majority of 2009 CapEx would target DRAM production as well as the cost to migrate DRAM production at its 300mm fab in Manassas to the 54nm node.
A small proportion of CapEx will be target at migration of NAND flash production to the 34nm node at its joint venture IMFT facility in Lehi. Micron also has CapEx commitments with its newly formed DRAM joint venture with Nanya Technology to the tune of $466.0 million through 2009.
