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© micron Business | November 17, 2022

Micron cuts back on production and Capex

In a response to current market conditions, Micron is reducing DRAM and NAND wafer starts by approximately 20% compared to the fourth quarter of 2022.

The company states in a press release that these reductions will be made across all technology nodes where it has meaningful output. Adding to this Micron is also working toward additional Capex cuts. For the calendar 2023, Micron now expects that year-on-year bit supply growth will be negative for DRAM, and in the single-digit percentage range for NAND.

The market forecast for calendar 2023 has just deteriorated. Micron anticipates that in the calendar year 2023, year-on-year DRAM bit supply will need to decrease and NAND bit supply growth would need to be significantly slower than previous estimates in order to significantly improve total inventory in the supply chain.

“Micron is taking bold and aggressive steps to reduce bit supply growth to limit the size of our inventory. We will continue to monitor industry conditions and make further adjustments as needed,” said Micron President and CEO Sanjay Mehrotra, in the press release. “Despite the near-term cyclical challenges, we remain confident in the secular demand drivers for our markets, and in the long term, expect memory and storage revenue growth to outpace that of the rest of the semiconductor industry.” 

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November 15 2022 12:19 am V20.10.16-2
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