Micron Postpones EUV-Based RAMs to 2025, Announces 10% Employee Layoffs

The extreme cost-cutting measures, which Micron revealed this week, involve a 10% employee decrease as well as a significant drop in capital expenditures. The business will thus postpone the deployment of 1γ (1-gamma) manufacturing nodes that employ extreme ultraviolet (EUV) lithography until 2025 by slowing down the ramp of new DRAM nodes. Meanwhile, the firm has started sampling 24GB DDR5 memory chips for business applications.

With its most recent production techniques, Micron is the only prominent DRAM manufacturer that does not employ EUV lithography. The memory manufacturer intends to deploy its 1γ manufacturing method sometime in 2024, and it plans to employ EUV for several layers. Micron will have to slow down the ramp-up of DRAMs on its 1γ and 1β fabrication methods to decrease expenditure on new equipment in the future quarters as well as DRAM bit shipments. 

Image: Micron

Deep ultraviolet light is the only source used in the company’s most recent 1β (1-beta) production node, which enhances bit density by 35% and improves power efficiency by 15%. (DUV lithography). On the other hand, Samsung and SK Hynix are currently using EUV scanners for several layers in their 4th Generation 10nm-class technologies (1α, 1-alpha) and intend to do so more often with the introduction of 5th generation 10nm-class DRAM nodes. 

Given our decision to slow the 1ß DRAM production ramp, we expect that our 1γ (1-gamma) introduction will now be in 2025.

Similarly, our next NAND node beyond 232-layer 3D NAND memory will be delayed to align to the new demand outlook and required supply growth.” 

The delay of a EUV-based manufacturing process is significant since it reduces cycle times, boosts yields, and lowers costs by replacing many DUV masks with a single EUV layer. With regards to prices, Samsung and SK Hynix may have an advantage over Micron, given that they will both employ EUV significantly in the following years.

Micron Intends to Decrease its Workforce by 10 Percent in 2023

The business has to cut its operational costs as well since it anticipates modest demand growth for both kinds of memory it manufactures (about 20% for NAND and 10% for DRAM). By combining voluntary attrition and workforce cutbacks, it intends to lower its headcount by 10% in 2023. Although the company’s production and cost-cutting initiatives seem extreme, Micron believes that supply and demand must be balanced to maximize profitability and long-term success.

For both years, demand in DRAM and NAND is well below historical trends and future expectations of growth, largely due to reductions in end demand in most markets, high inventories at customers, the impact of the macroeconomic environment, and the regional factors in Europe and China.”

The restructure of Micron follows announcements of hiring freezes or layoffs from other semiconductor firms. Numerous tech giants such as Intel, Qualcomm and NVIDIA announced job reductions following ongoing economic recession and declining demand.


Muhammad Zuhair

Passionate about technology and gaming content, Zuhair focuses on analysing information and then presenting it to the audience.
Back to top button