Thursday, October 9, 2008

Micron Shuts Down Boise NAND Fab, Cuts 15 Percent

Boise, Idaho-based memory manufacturer Micron Technology said Thursday that it is restructuring its memory operations, shutting down its NAND flash memory manufacturing at IM Flash Technologies, the firm's joint venture with Intel in Boise. The firm said it will also lay off 15 percent of its global workforce over the next two years, with a majority of the workforce reductions will occur in Boise. The firm said will begin the reductions with a voluntary program, and will provide severance and outplacement services to affected employees. Micron blamed the shutdown on declining customer demand and product oversupply in the marketplace. Micron said it will take restructuring charges of approximately $60M, but expects to save more than $175M next year due to the restructuring.