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Micron to quit SRAM and TCAM production
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Monday, March 17, 2003
Micron Technology Inc. on Friday confirmed that the memory chipmaker is suspending further production of SRAMs and Ternary Content Addressable Memories (TCAMs) as part of its cost reduction effort.
The current work in progress and inventory of both parts will continue to be sold until stocks are depleted, a spokesman said.
"Micron will focus on those products that have the greatest opportunity for return in the current market environment and in the short term," he added.
Micron will spell out its full restructuring program when it releases its fiscal second quarter financial report next Thursday, the spokesman said.
Last month, Micron announced it would cut its global workforce by 10% and would drop certain, unnamed product lines.
The latest moves were first disclosed by iSuppli Inc., a market research firm based in El Segundo, Calif. According to Betsy Van Hees, an analyst for iSuppli, Micron also has stopped development and wafer starts on its SynchFlash and embedded memory lines.
"Although this was a difficult and painful decision for Micron, in the long haul it is the right move for the DRAM powerhouse," Van Hees wrote.
"The venerable SRAM market has been shrinking over the past few years, missing out on the phenomenal growth experienced by DRAM and flash. During the peak year of the SRAM market, in 2000, SRAM revenue was $6.5 billion, only 7% higher than its previous peak of $6 billion in 1995."
Unit growth in the SRAM market has stagnated, she noted. In 1995, SRAM unit shipments amounted to 1.095 billion. Five years later, during the peak year of 2000, unit shipments were 1.226 billion, representing only a 12% increase from 1995.
SRAMs in 2000 accounted for only 12.7% of overall memory revenues, according to iSuppli.
Micron's retrenchment will allow it to focus on its core product, DRAM, which will give it the internal engineering resources it needs to be the first to adopt 0.11-micron process technology, according to Van Hees. Micron does seem to be gaining ground in the all-important race for 0.11-micron DRAM product introductions, with the company having been the first to offer a 1Gbit Double Data Rate (DDR) SDRAM. Micron also was the first to offer JEDEC-compliant DDR-II samples, she added.
By: DocMemory
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