 |
Micron Technology Headquarters. (Photo: Micron Technology) |
[Alpha Biz= Kim Jisun] Seoul, Korea – Micron Technology, a leading U.S. memory chip maker, has announced a reduction in its workforce in China and the cessation of its mobile NAND product development. This decision follows the warning from Chinese authorities in 2023 regarding "security issues" related to Micron's products, which significantly impacted its business in the Chinese market.
According to reports from local Chinese media, including Phoenix Technology, Micron has recently been reducing staff in its embedded division, including research and development, testing, and support departments such as FAE/AE. Employees based in Shanghai and Shenzhen are expected to be affected. This workforce reduction is seen as part of a broader contraction of Micron's operations in China.
In 2023, the Chinese Cyberspace Administration (CAC) raised concerns, claiming that Micron products posed "serious network security risks" that could jeopardize major information infrastructure supply chains and national security. The CAC subsequently demanded that all major information infrastructure operators in China halt purchases of Micron products under the country's Network Security Law.
As a result, Micron's business in China has suffered significant losses. Despite forecasting record global revenues for the current fiscal year, analysts predict that the company's sales in China will continue to decline. In 2023, Micron's revenue from China accounted for just 12.1% of its total revenue, and its market share in the region has also decreased.
Micron explained its decision to scale back its China operations by stating that the ongoing poor performance of its mobile NAND products led to the decision to halt global development of future mobile NAND products. This includes the termination of the development of UFS (Universal Flash Storage) 5.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
