Micron Technology announced a change in strategy “to further focus on memory and storage innovation for data centres.”
As part of this change, Micron will increase its investment in new memory products that use the Compute Express Link (CXL) interface, which provides a flexible connection to transfer data between processors, accelerators, memory, and storage with minimal latency. At the same time, Micron discontinues the development of 3D XPoint memory, allocating the resources it frees up to accelerate time-to-market for CXL-enabled memory products.
Low demand for 3D Xpoint memory pushed Micron to change its strategy. It does not allow production to be scaled up to a large enough volume to justify the cost of continuing development. According to the manufacturer, the underutilization of the facility’s capacity in Utah, which produces 3D XPoint memory, will cost it $ 400 million this year alone.
In line with the new strategic direction, Micron talks for the only factory to manufacture 3D XPoint memory and hopes to enter into a sales agreement this calendar year. Even after the sale, Micron will retain all the intellectual property associated with 3D Xpoint.