Micron Announces Further Actions to Address Market Conditions

[TheLostSwede]

Micron Technology, Inc., today announced that in response to market conditions, the company is reducing DRAM and NAND wafer starts by approximately 20% versus fiscal fourth quarter 2022. These reductions will be made across all technology nodes where Micron has meaningful output. Micron is also working toward additional capex cuts. In calendar 2023, Micron now expects its year-on-year bit supply growth to be negative for DRAM, and in the single-digit percentage range for NAND.

Recently, the market outlook for calendar 2023 has weakened. In order to significantly improve total inventory in the supply chain, Micron believes that in calendar 2023, year-on-year DRAM bit supply will need to shrink and NAND bit supply growth will need to be significantly lower than previous estimates. "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. "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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[dir_d]

Looks like Ram prices are going to go up again.

 

[GunShot]

Micron Technology, Inc., today announced that in response to market conditions, the company is reducing DRAM and NAND wafer starts by approximately 20%

* psst * You people are directly responsible for the poor market conditions or... are you allowing the consumer to set your gouged MSRP's prices?!

 

[maxfly]

We can never have nice things.

 

[TheinsanegamerN]

And right on cue.

wish the chinese would get into the RAM game, just to turn up the heat on the market.

 

[HisDivineOrder]

"Prices are decreasing, sir."

"Reduce production. Everyone must pay too much for things. Otherwise, people will get used to paying less and buying more things."

"You are truly the wisest of us all."

 

[80-watt Hamster]

"Prices are decreasing, sir."

"Reduce production. Everyone must pay too much for things. Otherwise, people will get used to paying less and buying more things."

"You are truly the wisest of us all."

Alternatively, they don't want to waste money and resources producing product they can't sell.

Also, both NAND and DRAM are cheap right now (excluding DDR5). It's possible there's a redux of the price fixing cartel going on, but I don't think that's what's happening here.

 

[kapone32]

The only reason a Company reduces production in a world where Car companies are desperate for parts there can be no other reason than trying to protect the price.

 

[TheinsanegamerN]

Alternatively, they don't want to waste money and resources producing product they can't sell.

Also, both NAND and DRAM are cheap right now (excluding DDR5). It's possible there's a redux of the price fixing cartel going on, but I don't think that's what's happening here.

Fool me once, shame on you. Fool me twice, shame on me.

This would be the third or fourth time time this has happened. That's a clear pattern.

 

[AsRock]

Don't worry, we be back to the floods and earthquakes soon enough.

 

[Dr. Dro]

The pandemic was a calamity to the tech industry. They want to retain that unusually inflated ultra-high ASP no matter what. Just look at the RTX 4080, that GPU is a disaster and it will sell.

Whatever happened to digital inclusion programmes and making technology accessible to all anyway? It's almost like both the industry and lawmakers decided that we've had enough inclusion, enough freedom of speech, etc.

 

[mechtech]

WHAT?!?!?!

I thought a few months ago everyone including their grandma was building new fabs!!

 

[80-watt Hamster]

Fool me once, shame on you. Fool me twice, shame on me.

This would be the third or fourth time time this has happened. That's a clear pattern.

Didn't know about the '18 and '21 filings. The latter got dismissed, while the former seems to be ongoing. Guess we'll have to wait and see how this one shakes out.

 

[hat]

The only reason a Company reduces production in a world where Car companies are desperate for parts there can be no other reason than trying to protect the price.

While generally true, memory chips were never the problem. They've maintained a pretty strong supply and prices have been dropping for a while now. Micron can't exactly just start churning out the same chips auto makers use at the drop of a hat.

 

[RogueSix]

I thought a few months ago everyone including their grandma was building new fabs!!

They (including the grandmas) are still building them. Just slower. Grandma speed basically so she can keep up...

 

[lexluthermiester]

The only reason a Company reduces production in a world where Car companies are desperate for parts there can be no other reason than trying to protect the price.

While generally true, memory chips were never the problem. They've maintained a pretty strong supply and prices have been dropping for a while now. Micron can't exactly just start churning out the same chips auto makers use at the drop of a hat.

This. The supply chain for the kinds of IC's that go into cars is not the same supply chain that make parts for PC's and other general computing tech.

They (including the grandmas) are still building them. Just slower. Grandma speed basically so she can keep up...

Correct. The fabs are still needed, just not as urgently.

 

[R-T-B]

Don't worry, we be back to the floods and earthquakes soon enough.

Earthquakes are a hoax by big dirt. Floods brought to you by Big Water.

 

[Chomiq]

Don't you dare lower your prices!