Micron has announced that it is selling the 3D XPoint Memory Fab located in Lehi, Utah, and has also ceased any further development on the memory technology. Micron started working on the radical memory technology with Intel but is now ending it and plans to sell the fab by the end of 2021 and exit the 3D XPoint business entirely.
Micron has unveiled the reason for ceasing development on the 3D XPoint products which is the lack of demand in the market. Micron said that there is “insufficient market validation to justify the ongoing high levels of investments required to successfully commercialize 3D XPoint at scale.”
Micron recently disclosed that it lost $400 million this year alone due to the lack of demand for 3D XPoint. Micron and Intel started working on this technology back in the early 2010s. 3D XPoint combines the speed and endurance of DRAM with the persistence of data storage devices. The project was secret at first and the first formal announcement came in 2015.
Then in 2018, Micron bought out Intel’s shares as well for $1.5 billion USD. However, Intel continues to use 3D XPoint as the underlying storage medium for its Optane products but has long relied upon Micron for its supply of 3D XPoint. The two companies have a supply agreement that lasts until the end of the year.
Micron made the following statement: (Courtesy Tom’s Hardware)
Micron is committed to completing our obligations under the existing wafer supply agreement with Intel, which currently goes through the end of CY21, and Micron intends to retain all of its intellectual property associated with 3D XPoint
Intel also responded to Micron’s plan to sell out its fab.
Micron’s announcement doesn’t change our strategy for Intel Optane or our ability to supply Intel Optane products to our customers
We will have to wait and see what the future holds for both Micron and Intel regarding this technology.
