With its most recent production techniques, Micron is the only prominent DRAM manufacturer that does not employ EUV lithography. The memory manufacturer intends to deploy its 1γ manufacturing method sometime in 2024, and it plans to employ EUV for several layers. Micron will have to slow down the ramp-up of DRAMs on its 1γ and 1β fabrication methods to decrease expenditure on new equipment in the future quarters as well as DRAM bit shipments. Deep ultraviolet light is the only source used in the company’s most recent 1β (1-beta) production node, which enhances bit density by 35% and improves power efficiency by 15%. (DUV lithography). On the other hand, Samsung and SK Hynix are currently using EUV scanners for several layers in their 4th Generation 10nm-class technologies (1α, 1-alpha) and intend to do so more often with the introduction of 5th generation 10nm-class DRAM nodes. The delay of a EUV-based manufacturing process is significant since it reduces cycle times, boosts yields, and lowers costs by replacing many DUV masks with a single EUV layer. With regards to prices, Samsung and SK Hynix may have an advantage over Micron, given that they will both employ EUV significantly in the following years. Similarly, our next NAND node beyond 232-layer 3D NAND memory will be delayed to align to the new demand outlook and required supply growth.”
Micron Intends to Decrease its Workforce by 10 Percent in 2023
The business has to cut its operational costs as well since it anticipates modest demand growth for both kinds of memory it manufactures (about 20% for NAND and 10% for DRAM). By combining voluntary attrition and workforce cutbacks, it intends to lower its headcount by 10% in 2023. Although the company’s production and cost-cutting initiatives seem extreme, Micron believes that supply and demand must be balanced to maximize profitability and long-term success. The restructure of Micron follows announcements of hiring freezes or layoffs from other semiconductor firms. Numerous tech giants such as Intel, Qualcomm and NVIDIA announced job reductions following ongoing economic recession and declining demand.
