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Micron Consolidates Memory Operations

The company aims to focus on higher-margin products.

Micron Technology

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announced an internal reorganization late Thursday as it pushes forward with its plan to diversify into more profitable, higher-growth markets.

The Boise, Idaho, company folded its mobile and systems memory business units into one overall memory division comprising its full gamut of memory chip products. Mark Duncan, Micron's head of technology was promoted to the post of COO.

The move, announced a day before Micron's annual analysts meeting, comes as Micron is taking steps to shift its focus from commodity DRAM memory to higher-margin semiconductor products like NAND flash memory, image sensors and specialty DRAM. In Micron's most recently completed quarter, sales of such chips accounted for 45% of overall sales.


profit in its fiscal first quarter plunged about 60% from the same time a year ago, as prices of DRAM memory chips declined 15%.

Micron expects the market for its non-DRAM chips to grow faster than the overall semiconductor market, and plans to allocate more of its manufacturing capacity to the production of such chips in 2006. In November, Micron announced a joint venture with


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to produce NAND flash memory chips under the IM Flash Technologies flag.

Shares of Micron were down 8 cents, or 0.5%, to $16.18 in extended trading.