Micron Slashes Production as Demand Tumbles
The days of lofty prices and sky-high demand for memory chips are over. Micron Technology (NASDAQ: MU) announced on Wednesday that it was dramatically ramping up its efforts to keep inventory levels in check as demand for DRAM and NAND chips slump.
What started as selective utilization reductions at its factories have now been expanded to across-the-board cuts. Micron is slashing wafer starts for DRAM and NAND chips by 20% compared to the fiscal fourth quarter of 2022. These cuts affect mature process nodes and cutting-edge process nodes alike.
On top of reducing production, Micron is considering further reductions to its capital spending plans. The company has already announced that it would knock capital expenditures down about 30% in fiscal 2023, but it now looks like deeper cuts are in the cards.
Source Fool.com
