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Micron in talks to sell Lehi chip factory after shift in strategic focus

Lehi Miron Building
Posted at 10:31 AM, Mar 17, 2021
and last updated 2021-03-17 12:31:59-04

BOISE, Idaho — Micron Technology, Inc. announced Tuesday it is updating its portfolio strategy to strengthen the focus on memory and storage innovations for the data center.

According to a news release, Micron will end the development of 3D XPoint and shift resources to focus on "accelerating market introduction of Compute Express Link (CXL)-enabled memory products." CXL is a recently introduced standard interface that enables flexible connection between compute, memory and storage.

Micron also announced it is in discussions for the sale of its Lehi, Utah factory dedicated to 3D XPoint production. The company says they aim to reach a sale agreement in 2021.

“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 release says Micron has determined there is not enough interest in the market to justify the high levels of investment needed to successfully commercialize 3D XPoint to address the evolving memory and storage needs of its customers. The changes do not impact the overall technology investment levels as the focus on emerging memory solutions is not changing, according to Micron.

The company says it plans to apply previous knowledge gained through the 3D XPoint initiative, as well as related engineering expertise and resources, to new types of memory-focused products.

Micron says the actions may result in "certain nonrecurring items in the company's GAAP financial results", but those are expected to gradually grow to Micron's near-term and long-term non-GAAP financial performance.

To listen to Micron's full investor update call, click here.