American memory-chip giant Micron Technology announced on December 3 (local time) that it will exit its Crucial-branded consumer storage business, marking a major strategic shift as the company doubles down on high-performance memory for artificial intelligence (AI) data centers amid a global supply shortage.

Micron said it will continue selling Crucial consumer products through retail and distribution channels until the end of its fiscal second quarter, which concludes in February 2026. During the transition, the company will maintain warranty support and work closely with partners and customers. Sales of Micron-branded enterprise products through commercial channels will continue uninterrupted.

Sumit Sadana, Executive Vice President and Chief Business Officer at Micron, said the accelerating demand for memory and storage driven by AI data-center growth was a key factor behind the decision. "To better support our larger strategic customers in faster-growing segments, Micron has made the difficult decision to exit the Crucial consumer business. We are deeply grateful to millions of customers, hundreds of partners, and the Micron teams that supported Crucial's 29-year journey."

The company emphasized that the move reflects its long-term strategy to reshape its product portfolio and align operations with higher-margin, sustainably profitable markets. By prioritizing enterprise and AI memory, Micron aims to enhance long-term performance and value creation for strategic customers and shareholders.

Founded 29 years ago, the Crucial brand has been widely recognized among PC DIY users for its DRAM modules and solid-state drives (SSDs). Although Micron does not disclose Crucial's specific financial contribution, analysts note that consumer memory plays only a minor role in the company's overall revenue.

Micron's decision comes as the global memory supply chain faces severe constraints—from smartphone NAND flash to advanced high-bandwidth memory (HBM) used in AI accelerators. Summit Insights analyst Kinngai Chan noted that the consumer storage business "is not an important driver" for Micron, reinforcing the case for reallocating resources toward higher-value products.

The company has been rapidly expanding its HBM business, the fiercest battleground among the world's three largest memory suppliers: Micron, South Korea's SK Hynix, and Samsung Electronics. HBM, built by vertically stacking DRAM dies to reduce power and enable massive data throughput, has become indispensable for AI model training and inference.

Micron CEO Sanjay Mehrotra said in September that HBM revenue in the quarter ending August had reached nearly USD 2 billion, implying an annualized run rate approaching USD 8 billion—a reflection of the explosive demand from generative AI infrastructure.

The company's cloud memory business recorded 213% year-on-year growth in the most recent quarter, underscoring the rapid expansion of AI server deployments. With memory prices rising and supply tightening, Micron appears willing to sacrifice its lower-margin Crucial consumer segment to secure supply for higher-margin AI data-center customers. Analysts say the move highlights Micron's expectation that memory shortages will persist, making it strategically necessary to prioritize premium-grade AI memory production, including HBM and enterprise SSDs.

Regarding employee impact, Micron said it plans to minimize disruption by offering opportunities for Crucial team members to transition into open roles within the company.