Micron Drops 4F² DRAM, Pins Vertical HBM Hopes on 2028

Micron Technology is shelving development of 4F² DRAM, concluding that the density gains no longer justify the added manufacturing complexity and cost, and that further scaling has run into limits. The decision, reported on 22 October, redirects the company's roadmap toward conventional 6F² DRAM while it pursues three-dimensional DRAM in parallel.

The shift in emphasis came as the stock added 2.7% in a broad recovery across memory-chip names. That rebound followed a Monday selloff in the semiconductor sector, with the bounce attributed to an industry-wide price trend rather than any fresh company announcement. Apple had warned that rising memory costs would weigh on its gross margin in the Christmas quarter, and media reports read the caution as confirmation of an upward trajectory in memory pricing. The iPhone maker expects those costs to keep climbing into next year — a signal of persistent tightness in memory supply that bears directly on Micron.

Analyst Backing and a Wider Sector Drag

Needham restated its buy rating on Micron on 22 October and kept its $1,650 price target unchanged.

Sentiment elsewhere was less supportive. Intel's weaker outlook and disappointing Amazon results weighed on the sector, and renewed doubts about the returns on AI infrastructure spending added to the gloom. Reports of claimed advances in DRAM by Chinese rival CXMT heaped further pressure on memory stocks.

Roadmap: Wafer Bonding, High-NA EUV and Stacked Memory

Micron laid out its development plans at an investor technology webinar on 21 October. The next DRAM process, 1?, will use wafer bonding, with High-NA EUV lithography slated for later generations. The company is also developing vertical HBM memory and vertical memory for local AI inference, both designed for integration directly above processors. Mass production of vertical HBM is targeted for 2028, though thermal constraints could complicate deployment of the technology.

Pay Deal Meets a Picket Line

On compensation, Micron will introduce an additional quarterly bonus worldwide from fiscal 2027, tied to the company's performance. Half will be paid in cash and half in shares subject to a one-year lock-up, supplementing the existing annual pay plan. Reuters reported that the announcement followed union pressure in Taiwan.

Labor friction at the Taoyuan site remains unresolved. Reuters reported on 22 October that the local union staged a one-day strike despite an agreement reached at another location. The dispute was still running as of a Friday report, with further talks tentatively scheduled for 6 November.