Jim Handy, analyst, Objective Analysis
For memory chip analyst Jim Handy of Objective Analysis, Micron’s decision to stop producing NAND chips – which are used to store data in iPods, digital cameras and other devices – on a 200-millimeter production line in Boise, Id., was all but a surprise.
“Micron’s announcement was to be expected. It costs 30% less to make something on 300-mm than 200-mm. Since NAND is selling below cost, today is the right time to close down any 200-mm NAND production that might still exist”, Jim Handy said.
Hynix has also recently made announcements about closing 200-mm production and the joint-venture between SanDisk and Toshiba also made some arrangements late last year. However, the 500 pounds gorilla in the NAND market, Korean maker Samsung, is keeping its mouth shut on future plans.
“Samsung has completely stopped telling anyone what they are doing with their production facitilities, but they have probably switched all NAND to 300-mm already”, adds Handy.
The decision to shut down the 200-mm production facility will have no effect on the Micron-Intel NAND joint-venture (IMFT) as it probably represented well below 10% of IMFT’s total output.
“The IMFT capacity will produce plenty of chips using their 300-mm capacity”, confirmed Jim Handy.
