SAN FRANCISCOMemory chip specialist Micron Technology Inc. will cut 500 jobs and phase out 200-mm wafer manufacturing operations at the company's Boise, Idaho headquarters in response to deteriorating economic conditions, the company said Monday (Feb. 23).
As many as 2,000 jobs could be eliminated by the end of August as a result of the actions, Micron said. The company did not say exactly when the Boise fab would cease production.
Micron said the cuts announced Monday would be in addition to cuts made last October, when the company restructured its manufacturing operations and eliminated 15 percent of its workforce, or 3,000 employees.
Micron will continue to operate its 300-mm R&D fab in Boise and perform various other activities there, including reticle manufacturing, product design and support, quality assurance and systems integration work, Micron said. Following the layoffs, Micron will employ more than 5,000 people in Idaho, the company said.
Micron's remaining manufacturing infrastructure consists of facilities in Virginia, Italy, and Japan, as well as joint venture operations in Utah, Singapore and Taiwan. Many of the remaining facilities are 300-mm fabs.
Steve Appleton, Micron chairman and CEO, said through a prepared statement that the company had hoped DRAM demand would stabilize and the market would begin to recover in the spring.
"Unfortunately, a better environment has not materialized, and we are at a point where we wanted to let our employees and the community know in advance what will occur later this summer," Appleton said.
Cash restructuring charges will be approximately $50 million, which will generate a gross annualized operating cash benefit of $150 million, Micron said. The net operating cash flow effect will be neutral for fiscal year 2009, the company said.