Micron expects to reduce memory chip supply in 2023

Micron Technology said on Wednesday that it will reduce the supply of memory chips and make more cuts to capital expenditure plans, as the semiconductor company is trying to clear excess inventory caused by sluggish demand.

The company's shares were down nearly 4% in early trading. Micron is the first major chipmaker to sound the alarm about falling demand for PCs and smartphones due to high inflation earlier this year.

The company said, in order to substantially improve total inventory. DRAM bit supply will need to shrink, and NAND bit supply growth will be much lower than previously estimated.

Micron is reducing its operating rates for DRAM and NAND wafers or the initial process in semiconductor production by about 20% compared with the fourth quarter that ended September 1.

For 2023, Micron expects its DRAM bit supply to show negative year-on-year growth, and its NAND bit supply to show a single-digit percentage year-on-year growth.

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