Micron Technology(US:MU) 2 1 Shi Ji Jing Ji Bao Dao·2025-12-11 05:08Core Viewpoint - Micron Technology has announced its exit from the consumer storage brand Crucial, effective March 2026, to reallocate resources towards enterprise and AI-driven clients due to the explosive growth in data center demand driven by AI [2][3]. Group 1: Company Strategy - Micron's decision to withdraw from the Crucial business is described as a difficult one, aimed at focusing on higher-margin enterprise and AI strategic customers [2]. - The company is one of the top three memory manufacturers globally, holding a 25.7% market share in DRAM and 14.2% in NAND as of Q3 2025 [3]. Group 2: Market Dynamics - The exit of Micron from the consumer storage market adds uncertainty to the already imbalanced supply-demand dynamics in the storage industry [3]. - The ongoing price surge in storage chips is expected to increase costs for smartphones and computers, driven by a shift in demand towards high-bandwidth, low-power products due to AI [4]. Group 3: Financial Performance - In Q3 2025, Samsung's storage business reported sales of 26.7 trillion KRW (approximately $18.7 billion), a 20% year-on-year increase, while SK Hynix's revenue reached 24.45 trillion KRW (approximately $17.1 billion), a 39% year-on-year increase [3]. - Micron's revenue for Q4 FY2025 was $11.32 billion, a 46% year-on-year increase, with a gross margin of 45.7%, up 9.2 percentage points year-on-year [3]. Group 4: Future Market Trends - The current price increase in storage chips is expected to last longer and cover a broader range than previously anticipated, with AI server investments driving future growth [4][5]. - The supply of DDR4 chips is predicted to remain tight until at least mid-2026 due to the shift in production capacity towards advanced processes [5]. Group 5: Opportunities for Domestic Manufacturers - The exit of major players from the consumer storage market creates opportunities for domestic manufacturers to fill the supply gap, particularly in the DDR4 segment [7]. - Companies like GigaDevice have already begun to benefit from the strategic shift of larger firms, with their DRAM business showing significant recovery in profitability [7][8].