Micron Cuts DRAM and NAND Production by 20% from 3FQ22 to 4FQ22

Micron Technology, Inc. announced that, in response to market conditions, it is reducing DRAM and NAND wafer starts by approximately 20% vs. 4FQ22.

These reductions will be made across all technology nodes where the company has meaningful output. The form is also working toward additional Capex cuts. In calendar 2023, Micron now expects its Y/Y 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 improve total inventory in the supply chain, the manufacturer believes that in calendar 2023, Y/Y 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 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.”