Micron has announced(Opens in a new window) that it intends to stop manufacturing 3D XPoint memory this year and exit the market due to a lack of demand.

Although 3D XPoint isn’t a well-known name, Intel’s Optane is, and it relied on Micron’s specialized memory to be as fast as RAM while storing data like an SSD. However, Intel sold its share in the 3D XPoint business to Micron in 2018, and earlier this year announced consumer models of its Optane-only SSDs were being discontinued.

As Tom’s Hardware reports(Opens in a new window), Micron is now following Intel and exiting the 3D XPoint business due to “insufficient market validation to justify the ongoing high levels of investments required to successfully commercialize 3D XPoint at scale.” It follows a $400 million loss, and now the company is tasked with selling the fab in Lehi, Utah, where 3D XPoint is produced. A task it hopes to complete by the end of 2021.

Micron still has an agreement with Intel to supply the memory, which Micron will honor. “Micron is committed to completing our obligations under the existing wafer supply agreement with Intel, which currently goes through the end of CY21, and Micron intends to retain all of its intellectual property associated with 3D XPoint.”

Meanwhile, Intel has turned its focus to “Optane Memory H20 with Solid State Storage” for the enterprise market. The chip giant does have its own manufacturing facility still operating in New Mexico, though. Intel responded to the Micron news by making it clear that “Micron’s announcement doesn’t change our strategy for Intel Optane or our ability to supply Intel Optane products to our customers.”

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As to what the future holds for Micron, the company “will increase investment in new memory products that leverage the Compute Express Link (CXL), the recently introduced industry standard interface that enables flexible connection between compute, memory and storage.” All of the resources Micron currently has focused on 3D XPoint will be reallocated across both existing memory and emerging memory areas to focus on accelerating market introduction of CXL-enabled innovations.