Micron Updates Data Center Portfolio Strategy to Address Growing Opportunity for Memory and Storage Hierarchy Innovation
March 16 2021 - 4:30PM
Micron Technology, Inc. (Nasdaq: MU), today announced updates to
the company’s portfolio strategy to further strengthen its focus on
memory and storage innovations for the data center. Micron will
increase investment in new memory products that leverage the
Compute Express Link™ (CXL™), the recently introduced industry
standard interface that enables flexible connection between
compute, memory and storage. With immediate effect, Micron will
cease development of 3D XPoint™ and shift resources to focus on
accelerating market introduction of CXL-enabled memory products.
“Memory and storage are critical to the data economy, and the
need for data center memory innovation has never been greater,”
said Micron President and CEO Sanjay Mehrotra. “As a leader in
memory and storage, Micron is committed to leading innovation to
unleash the next generation of data centers. Today’s announcement
reflects our focus to invest in high-value solutions for customers
that also deliver strong shareholder returns.”
The broad proliferation of artificial intelligence and advances
in data analytics are driving workload requirements that
necessitate a change to compute architectures. The CXL interface
opens up new paths for platform innovation and optimization in the
data center. Micron sees immense promise in new classes of
memory-centric solutions that utilize CXL to scale the capacity,
performance and content required by applications to run on
infrastructure with greater architectural freedom.
In addition, Micron has now determined that there is
insufficient market validation to justify the ongoing high levels
of investments required to successfully commercialize 3D XPoint at
scale to address the evolving memory and storage needs of its
customers. Micron’s portfolio changes do not impact the company’s
overall technology investment levels as its focus on emerging
memory solutions remains unchanged. Micron plans to apply the
knowledge it has gained from the breakthroughs achieved through its
3D XPoint initiative, as well as related engineering expertise and
resources, to new types of memory-centric products that target the
memory-storage hierarchy.
In line with this new strategic focus, Micron is engaged in
discussions for the sale of its Lehi, Utah, fab currently dedicated
to 3D XPoint production. The company aims to reach a sale agreement
within calendar year 2021.
These actions today may result in certain nonrecurring items in
the company’s GAAP financial results but are expected to be
accretive to Micron’s near-term and long-term non-GAAP financial
performance.
Micron will host a conference call with investors today at 3:00
p.m. Mountain time at http://investors.micron.com. Webcast replays
can be accessed from Micron’s Investor Relations website and will
be available for approximately one year after the call.
About Micron Technology, Inc.We are an industry
leader in innovative memory and storage solutions transforming how
the world uses information to enrich life for all. With a
relentless focus on our customers, technology leadership, and
manufacturing and operational excellence, Micron delivers a rich
portfolio of high-performance DRAM, NAND and NOR memory and storage
products through our Micron® and Crucial® brands. Every day, the
innovations that our people create fuel the data economy, enabling
advances in artificial intelligence and 5G applications that
unleash opportunities — from the data center to the intelligent
edge and across the client and mobile user experience. To learn
more about Micron Technology, Inc. (Nasdaq: MU), visit
micron.com.
© 2021 Micron Technology, Inc. All rights reserved. Information,
products, and/or specifications are subject to change without
notice. Micron, the Micron logo, and all other Micron trademarks
are the property of Micron Technology, Inc. All other trademarks
are the property of their respective owners.
Forward-Looking StatementsThis press release
contains forward-looking statements regarding our industry,
strategic position, expected investments, products, potential
transactions and financial and operating results. These
forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially.
Please refer to the documents we file with the Securities and
Exchange Commission, specifically our most recent Form 10-K and
Form 10-Q. These documents contain and identify important factors
that could cause our actual results to differ materially from those
contained in these forward-looking statements. These certain
factors can be found at www.micron.com/certainfactors. Although we
believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results,
levels of activity, performance, or achievements. We are under no
duty to update any of the forward-looking statements after the date
of this release to conform these statements to actual results.
Micron Media Relations ContactErica
PompenMicron Technology, Inc.+1 (408) 834-1873epompen@micron.com
Micron Investor Relations ContactFarhan Ahmad
Micron Technology, Inc. +1 (408) 834-1927farhanahmad@micron.com
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