Micron Announces Further Actions to Address Market Conditions

Rhea-AI Summary

Micron Technology (Nasdaq: MU) announced a 20% reduction in DRAM and NAND wafer starts compared to fiscal Q4 2022, responding to weakened market conditions. The company anticipates negative year-on-year bit supply growth for DRAM and minimal growth for NAND in 2023. These steps aim to manage inventory effectively. Despite current challenges, Micron remains optimistic about long-term demand in the memory and storage markets, expecting revenue growth to outpace the semiconductor industry as a whole.

Positive

• Long-term confidence in demand for memory and storage markets.
• Expectation of revenue growth outpacing the semiconductor industry.

Negative

• 20% reduction in wafer starts indicates reduced production capacity.
• Negative year-on-year bit supply growth expected for DRAM.

BOISE, Idaho, Nov. 16, 2022 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU), 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.” 

For more information, please visit investors.micron.com.

About Micron Technology, Inc.  
We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence and 5G applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.

Forward-Looking Statements
This press release contains forward-looking statements regarding our industry, our markets, and our future actions, including expected wafer starts and capital expenditures. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at micron.com/certainfactors. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results.

© 2022 Micron Technology, Inc. All rights reserved. Information, products, and/or specifications are subject to change without notice. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

Micron Media Relations Contact
Erica Rodriguez Pompen
Micron Technology, Inc.
+1 (408) 834-1873
epompen@micron.com

Micron Investor Relations Contact
Farhan Ahmad
Micron Technology, Inc.
+1 (408) 834-1927
farhanahmad@micron.com

FAQ

What is the recent announcement from Micron Technology (MU)?

Micron announced a 20% reduction in DRAM and NAND wafer starts due to weakened market conditions.

What does Micron expect for its DRAM and NAND bit supply growth in 2023?

Micron anticipates negative year-on-year bit supply growth for DRAM and single-digit growth for NAND in 2023.

How is Micron Technology addressing inventory issues?

Micron is taking steps to reduce bit supply growth to manage inventory levels effectively.

What is Micron's outlook for the semiconductor market?

Micron remains confident in long-term demand drivers and expects memory and storage revenue growth to outpace the overall semiconductor industry.