Micron to cut hundreds of jobs in China

Micron Technology has begun a new round of layoffs in mainland China, with hundreds of jobs expected to be cut as the company halts global development in the mobile NAND memory market.

The US-based chipmaker, which operates offices in Shanghai, Shenzhen, and Xian, cited continued weakness in the mobile NAND sector as the reason for this move.

Mobile NAND memory is used in devices such as smartphones and tablets.

Chinese media reported job cuts at Micron’s research and development, testing, and support facilities in China, though the company has not disclosed official numbers.

Micron previously employed over 3,000 people in China, with about two-thirds based in Xian.

The company said it will continue to develop other NAND solutions, including solid-state drives and automotive products, and maintain its presence in the mobile DRAM market.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Mobile memory weakness persists despite broader market recovery

Micron’s retreat from mobile NAND highlights how specific market segments can struggle even during overall industry growth.

The global memory market is projected to reach nearly $200 billion by 2025, with NAND market revenue expected to hit $65 billion after recovering from the 2022-2023 downturn1. Yet Micron’s mobile-focused operations are facing “continued weakness” severe enough to warrant halting global development entirely.

This represents a dramatic reversal from just a few years ago when Micron’s Mobile Business Unit was a major growth driver, with operating income surging from $97 million in fiscal 2016 to $3.03 billion in fiscal 20182.

The situation highlights how memory companies must navigate uneven demand across different applications, with data center and AI-driven segments experiencing robust growth while mobile storage faces saturation and pricing pressure.

2️⃣ Foreign tech companies accelerate China workforce reductions

Micron’s layoffs reflect a broader pattern of foreign technology companies scaling back their Chinese operations amid changing market conditions.

Global tech firms including Ericsson, Tesla, Amazon, and Intel have implemented significant workforce reductions in China throughout 20243. Citigroup alone cut 3,500 tech jobs across Shanghai and Dalian as part of its restructuring efforts4.