Why is Micron shutting down its Crucial brand?

Micron is closing the Crucial brand to shift focus and resources towards meeting the high demand for memory chips driven by the AI industry.

How is the AI boom affecting memory prices?

The AI boom is causing a significant increase in demand for memory chips, leading to widespread price hikes for consumers and businesses.

When will new Micron manufacturing facilities be ready?

Micron's new manufacturing facilities, including a major one in New York, are expected to be operational around 2027.

Home / Business and Economy / Micron Ditches Crucial: AI Boom Drives Memory Prices Sky-High

Micron Ditches Crucial: AI Boom Drives Memory Prices Sky-High

12 Jan

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Summary

Micron shutters its direct-to-consumer Crucial brand by January end.
AI boom drives massive demand, causing memory prices to quadruple.
New manufacturing facilities are expected to be operational by 2027.

Micron, a major global memory manufacturer, is closing its Crucial brand, which directly serves consumers with RAM and storage products. This decision, effective by the end of January, redirects company focus towards meeting the escalating demands of the AI industry.

The AI boom is significantly impacting the memory market, leading to a dramatic surge in prices. Consumers are experiencing substantial cost increases, with DDR5 memory prices reportedly tripling or quadrupling. This surge is attributed to the massive buildup of data centers for AI applications, consuming a large portion of available chip supply.

While Micron acknowledges the supply crunch, stating it's an industry-wide issue, new manufacturing facilities are under development. A significant facility in New York is slated for groundbreaking, with an expected completion date around 2027. However, with construction and fitting taking several years, widespread relief from high prices is not anticipated until well into the next decade.