Micron, a leading player among the three dominant global memory producers, has decided to discontinue its Crucial division, which handles retail sales of RAM and storage devices to individual buyers. The company plans to redirect resources toward the expanding artificial intelligence sector, a trend already driving up memory costs worldwide. This move has left many everyday users frustrated with the change.
During a recent discussion, a senior executive from Micron sought to minimize the impact of the decision, noting that the firm continues to provide RAM and related components to end-users indirectly through partnerships with computer assemblers. Christopher Moore, vice president overseeing marketing for Micron's mobile and client sectors, told Wccftech, 'Our perspective is that we're supporting global consumers in innovative ways. We maintain a substantial presence in the client and mobile segments.' He added that the company is also addressing needs in the data center space.
Similar arguments surfaced at the recent CES event, where representatives suggested that ongoing supplies to certain PC builders mean consumers aren't entirely left behind. However, these explanations fell flat, especially as numerous firms avoided specifying costs for upcoming hardware, worried that escalating memory expenses could wipe out their earnings prior to launch.
The surge in demand from data centers, fueled by the AI sector's rapid growth, is the primary factor behind the sharp increase in RAM costs. Regardless of discussions about potential overhyping in large language model ventures, basic economics of limited supply against high demand are pushing up prices for complete computers and causing DDR5 modules for personal use to rise by three or four times their previous levels.
As Micron capitalizes on current market opportunities, the Crucial brand will close operations by late January, concluding almost three decades of direct offerings for personal computer assembly, maintenance, and enhancements.
Moore described the challenge to Wccftech as a broader industry problem rather than one specific to Micron, emphasizing the shortage of available chips. This aligns with the company's official statement about pursuing high-demand areas. While accurate, it's worth observing that rivals Samsung and SK Hynix continue their consumer-facing memory and storage operations without interruption.
At CES, a common inquiry focused on strategies for addressing the memory shortage, often met with vague responses. Another frequent question concerned timelines for resolution, with projections varying from 2027 to as late as 2032, given that expanding data infrastructure will continue consuming chip resources well into the future.
Moore expressed a brighter outlook, pointing to a forthcoming Micron production site set to come online by 2027, as mentioned in a PCWorld interview. The company intends to initiate construction shortly on a massive semiconductor plant in New York, positioning it as the largest such facility in the United States.
Building and equipping a new chip fabrication center typically requires three to four years at minimum, meaning significant relief from the supply constraints remains years away. This timeline presumes that enthusiasm for AI investments persists without a sudden downturn, which could introduce far greater challenges beyond just the expense of upgrading personal computing setups.