Slumping demand continues to take its toll on the memory chip industry. Micron, the largest U.S. maker of memory chips, said earlier this week that it has been particularly affected by decreased demand for specialty DRAM products, and as a result it plans to phase out 200mm wafer manufacturing operations in its Boise, Idaho facility.
"This action will reduce employment at Micron's Idaho sites by approximately 500 employees in the near term and as many as 2,000 positions by the end of the company's fiscal year," Micron said in a statement. "The company has sufficient manufacturing capacity remaining and does not expect any disruption in product supply required for customer needs."
Micron went on to say that these latest job cuts were not anticipated and not part of the 15 percent global workforce reduction it announced last October.
The chip maker said it will continue to operate its 300mm research and development fabrication facility at the Boise site. Financially, Micron expects cash restructuring charges to be in the vicinity of $50 million, which Micron says will generate a gross annualized operating cash benefit of $150 million.