Micron Shuts Consumer Brand Amid AI-Driven Memory Shortage

Micron Technology has shuttered its Crucial consumer-facing brand to prioritize the production of high-bandwidth memory (HBM) for AI data centers. The company reported record fiscal Q1 2025 revenue of $8.71 billion, which surged to $13.64 billion in the following year's first quarter, driven by a 400% increase in AI data center revenue. Micron's HBM3E 8-high memory is now integrated into Nvidia's Blackwell B200 and GB200 platforms.

Executives warn that an unprecedented shortage of DRAM and NAND flash memory will persist beyond 2026, with some projections extending to 2028. This structural imbalance exists because AI accelerators consume the majority of available industry capacity, leaving a deficit for conventional PCs, smartphones, and cars. Consequently, Chinese smartphone makers including Oppo, Xiaomi, and Transsion have reduced their 2026 shipment targets.

To address the crisis, Micron is expanding manufacturing with a $100 billion project in Syracuse, New York, and additional facilities in Idaho and Taiwan. The company aims to move 40% of its DRAM manufacturing to the United States, supported by a $6.2 billion Chips Act award. Despite these investments, management notes that new capacity and yield optimizations will not provide meaningful relief to the consumer market until 2028. While the company has exited direct retail sales via Crucial, it continues to supply RAM modules to original equipment manufacturers like Dell and ASUS.