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HomeGeneral NewsTo Clear Up Excess Inventory Amid A Decline In Demand, Micron Will...

To Clear Up Excess Inventory Amid A Decline In Demand, Micron Will Reduce Memory Chip Supply In 2023!!!

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Micron Updates: Micron originally raised concern earlier this year about declining demand for personal computers and cellphones in the face of decades-high inflation.

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HIGHLIGHTS:

  • The first major chipmaker to warn about declining demand is Micron.
  • Over 31% less people are investing in the Philadelphia SE Semiconductor index.
  • Micron claimed to be lowering its DRAM and NAND wafer production.

Today I am going to write about  technology updates today: Micron will reduce the supply of memory chips in 2023 to clear up excess stock amid a decline in demand.

As the semiconductor company struggles to get rid of excess inventory because of a slowdown in demand, Micron announced on Wednesday that it would limit memory chip supply and further slash its capital spending forecast.

In afternoon trade, shares of the corporation decreased 5.8% to $59.44 (approximately Rs. 4,900).

In the face of decades-high inflation, Micron was the first significant chipmaker to raise an alarm about declining demand for personal computers and smartphones earlier this year.

Chipmakers and electronics firms, which had been bracing for the pandemic-driven demand surge to last and had for a long time faced with supply limitations, quickly discovered themselves with excess inventory.

All end-markets, including industrial, data centres, and personal electronics, are now being impacted by the general industry weakness. Over 31% less has been made on the Philadelphia SE Semiconductor index so far this year.

The company stated that “DRAM bit supply will need to decline and NAND bit supply growth would need to be much lower than earlier predictions” for the overall inventory to be greatly improved.

According to Wedbush Securities analyst Matt Bryson, widespread supply and capex reductions signal a bottom for the memory market and are therefore positive signs.

But he added that there is a chance for a deeper decline in demand, which would probably have an impact on the entire technology sector.

OVER 31% OF THE PHILADELPHIA SE SEMICONDUCTOR INDEX HAS FALLEN:

Micron reported a 20 percent decrease in DRAM and NAND wafer starts compared to the fourth quarter that ended on September 1 in the semiconductor industry. Wafer starts are the first step in the manufacturing process.

The company anticipates that bit supply growth will be negative for DRAM in 2023 and in the low single-digit percentage range for NAND.

The impression that component suppliers and semiconductor vendors have already factored adverse scenarios into their forecasts, thus derisking the stocks, is probably what weighs on Micron’s outlook, according to Bryson.

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