August 12, 2025 /SemiMedia/ — Micron Technology has begun layoffs in China, affecting embedded R&D, testing, and FAE/AE teams in cities including Shanghai and Shenzhen, as part of a broader product strategy shift.

The company said it will cease development of future mobile NAND products worldwide, including the UFS5 project, due to prolonged weakness in the mobile NAND market and slower growth compared with other NAND opportunities. Micron will continue to develop and support other NAND solutions such as SSDs and automotive-grade NAND, while maintaining its global leadership in mobile DRAM with a full product portfolio.

While scaling back in mobile storage, Micron raised its fourth-quarter revenue and profit forecasts, citing surging demand for high-bandwidth memory (HBM) chips used in AI infrastructure. The company now expects quarterly revenue of $11.2 billion, plus or minus $100 million, up from a prior forecast of $10.7 billion, plus or minus $300 million. Adjusted gross margin guidance has been lifted from 42% to 44.5%, and adjusted EPS from $2.50 to $2.85.

Analysts noted that tight HBM supply and strong AI demand have enabled Micron to increase prices, a notable shift from historically lower profit margins in the memory chip sector. Management said price momentum is strong across global end markets, with DRAM pricing showing particular improvement.

Potential trade headwinds include U.S. tariffs of 100% on certain imported chips, though these do not apply to chips made in the U.S. or those committed to U.S. production. In June, Micron increased its planned U.S. investment by $30 billion, bringing the total to $200 billion.