On August 13, 2025, Micron Technology, a semiconductor manufacturer based in the United States, announced layoffs and business adjustments in China. The focus of these moves is on shrinking the mobile NAND business, affecting research and development, testing, and technical support positions in cities such as Shanghai and Shenzhen. This reflects Micron’s continued contraction in the Chinese market. The company expects its revenue in the fourth quarter to reach $11.2 billion, reflecting strong demand for memory chips in the global AI infrastructure.
August 11 saw Micron Technology, a global leader in memory and semiconductor manufacturing, announcing layoffs and restructuring in China. This adjustment primarily involves embedded team research and development, testing, and on-site application engineers in cities like Shanghai and Shenzhen, attracting attention within the industry.
According to Micron officials, the layoffs are closely related to the strategic decision to halt the development of mobile NAND products globally, especially the termination of the development of the new UFS5 product. In recent years, the demand for mobile NAND products has been consistently weak, particularly with a significant slowdown in growth in the Chinese market, which has become a key background to this adjustment. Based on Micron’s 2024 fiscal year report, revenue from mainland China accounted for only 12.1%, and it is expected to further decline in the future. While Micron has shown strong performance in the global server and high-performance storage chip business, the pressure in the mobile storage sector has intensified their challenges in the Chinese market.
On August 13, a Chinese internet technology industry insider, who goes by the pseudonym Gao Kun, shared insights with a reporter from Dajiyuan, stating that Micron’s layoffs reflect the reality of its shrinking business in China. “The global semiconductor industry landscape is adjusting, with Western tech companies accelerating their technological iterations. In the Chinese market, risks of technology leaks and personnel infiltration are increasing, and Micron’s Chinese employees are limited by nationality policies, making it difficult to protect core technologies effectively, leading to challenges in expanding into high-end sectors, forcing them to shift core business overseas.”
Technology product observer Mr. Zhang pointed out that Micron’s layoffs are a manifestation of the continuous deterioration of the business environment in China. He said, “Foreign companies in China are experiencing a harsh environment, including being required by authorities to exchange market access for technology, facing difficulties and pervasive technological theft, along with tight surveillance. In addition, the Trump administration’s stringent restrictions on Chinese technology have made Micron’s complete withdrawal from China only a matter of time.”
Despite the setbacks in the mobile NAND business, Micron continues to see strong growth in the global DRAM and High-Bandwidth Memory (HBM) sectors. In the third quarter of the 2025 fiscal year, Micron’s revenue reached $9.3 billion, a 15% increase quarter-on-quarter and a 37% increase year-on-year, with a net profit of $2.181 billion, a 22.3% increase quarter-on-quarter and more than double year-on-year. HBM chips are in high demand in AI and data center sectors, becoming a major driver of growth, with projected HBM revenue for the 2025 fiscal year reaching hundreds of millions.
Mr. Zhang further explained, “Despite global profit growth, Micron is severely constrained in the Chinese market. In May 2023, the Chinese Cyberspace Administration conducted a network security review of Micron products, identifying major security vulnerabilities and requiring critical infrastructure operators to cease procurement. This is similar to the recent resistance encountered by Nvidia’s H20 chip, which continues to compress Micron’s profit margins in China.”
Industry forecasts indicate that by 2025, Micron’s market share in the Chinese Mobile LPDDR market will drop to single-digit percentages. Mr. Zhang concluded, “Micron’s layoffs and business adjustments are a direct reflection of the deteriorating business environment and increased technological blockades in China. Under the dual pressures of U.S. technology bans and the rise of domestic companies, foreign semiconductor firms will be forced to reevaluate their presence in China, with Micron’s layoffs just being the beginning.”
Additionally, Micron’s expected revenue in the fourth quarter of the 2025 fiscal year reaching $11.2 billion reflects the strong demand for memory chips in the global AI infrastructure, contrasting sharply with the contraction in the Chinese market.