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On Tuesday, local time, Reuters reported that Micron would sell its chip factory in Utah due to a strategic shift. Micron said that in the future, it will no longer produce memory chips that were jointly developed with Intel about a decade ago. Therefore, it will sell the chip factory in Lehi, Utah, which produces the memory chips, and is expected to complete the sale before the end of this year.
The Lehi factory is Micron's only factory in Idaho that manufactures 3D Xpoint memory chips. Micron currently has only one SSD series using XPoint (X100 series) on the market. 3D Xpoint is a memory chip technology jointly announced by the two parties in 2015. Based on PCM phase change storage technology, the principle is different from NAND flash memory. So at that time Intel and Micron claimed that it had 1000 times the performance of flash memory, 1000 times the reliability and 10 times. Its capacity density is several orders of magnitude higher than the best SLC flash memory in flash memory.
Prior to this, the two parties had ended their cooperation, and Intel transferred its shares in the joint venture plant in Lehi, Utah to Micron. Then in March last year Intel signed a new 3D XPoint memory wafer supply agreement with Micron.
Sumit Sadana, Micron’s chief commercial officer, said in an interview with Reuters that the 3D Xpoint product market is tepid because users must rewrite most of the software to take advantage of this new type of memory. The sluggish market demand means that Micron is unable to mass-produce in order to obtain the income that can continue to develop chips. The idleness of the plant will also cost Micron US$400 million this year.
He said that Micron will retain all intellectual property rights related to 3D Xpoint, and is keeping in touch with multiple potential buyers of the factory. Although he did not disclose the names of the parties or the price of the factory, he said that bidders may not be limited to storage companies, including computing chip manufacturers, analog chip manufacturers or foundries. "Now is a good time to own such assets, because the industry is struggling with capacity."
It is reported that after exiting the 3D Xpoint market, Micron plans to move to the development of another technology, a new, faster industry-wide interconnect memory chip called Compute Express Link.
Sumit Sadana said that because the software ecosystem is easier to adopt, this new investment will have a higher return.
Intel will continue to develop next-generation chips, and said it will produce the "Ao Teng" series of 3D Xpoint memory chips at its factory in New Mexico.
Prior to this, the two parties had ended their cooperation, and Intel transferred its shares in the joint venture plant in Lehi, Utah to Micron. Then in March last year Intel signed a new 3D XPoint memory wafer supply agreement with Micron.
Sumit Sadana, Micron’s chief commercial officer, said in an interview with Reuters that the 3D Xpoint product market is tepid because users must rewrite most of the software to take advantage of this new type of memory. The sluggish market demand means that Micron is unable to mass-produce in order to obtain the income that can continue to develop chips. The idleness of the plant will also cost Micron US$400 million this year.
He said that Micron will retain all intellectual property rights related to 3D Xpoint, and is keeping in touch with multiple potential buyers of the factory. Although he did not disclose the names of the parties or the price of the factory, he said that bidders may not be limited to storage companies, including computing chip manufacturers, analog chip manufacturers or foundries. "Now is a good time to own such assets, because the industry is struggling with capacity."
It is reported that after exiting the 3D Xpoint market, Micron plans to move to the development of another technology, a new, faster industry-wide interconnect memory chip called Compute Express Link.
Sumit Sadana said that because the software ecosystem is easier to adopt, this new investment will have a higher return.
Intel will continue to develop next-generation chips, and said it will produce the "Ao Teng" series of 3D Xpoint memory chips at its factory in New Mexico.