Micron rolls with China blow as it rides memory storm

Micron rolls with China blow as it rides memory storm

Business news |
By Peter Clarke

Cette publication existe aussi en Français

Micron Technology Inc. (Boise, Idaho) made a net loss of US$1.9 billion on revenue of US$3.75 billion in its third quarter of fiscal 2023 ended June 1.

Micron’s net loss was reduced from the previous quarter when it made a net loss US$2.31 billion on quarterly revenue of US$3.69 billion.

The depth of the memory market collapse is reflected in Micron’s year-on-year comparison. Revenue has more than halved. In 3Q fiscal 2022 Micron made a net profit of of US$2.63 billion on revenue of US$8.64 billion.

Micron said it has reduced wafer starts to 30 percent for both DRAM and NAND

In a statement CEO Sanjay Mehrotra said: “We believe that the memory industry has passed its trough in revenue, and we expect margins to improve as industry supply-demand balance is gradually restored.” He added: “The recent Cyberspace Administration of China (CAC) decision is a significant headwind that is impacting our outlook and slowing our recovery. Longer-term, Micron’s technology leadership, product portfolio, and operational excellence continues to strengthen our competitive positioning across diverse growth markets, including AI and memory-centric computing.”

In May China’s cyber-regulator imposed a ban on purchase of Micron memory products for use in critical infrastructure (see Micron hit with ban on sales into Chinese ‘critical infrastructure’). Micron said several Micron customers, including smartphone OEMs, have been contacted by Critical Information Infrastructure (CII) operators or representatives of the Chinese government concerning the future use of Micron products.

Micron said that China is responsible for about 25 percent of its worldwide revenue and that approximately half of that – a low double-digit percentage of worldwide revenue is at risk of being impacted by the ruling.

Investments in capital expenditures in the quarter were US$1.38 billion and Micron ended the quarter with cash, marketable investments, and restricted cash of US$11.40 billion.

The outlook for the 4Q of fiscal 2023 is revenues up slightly at between US$3.7 billion and US$4.1 billion.

Related links and articles:

News articles:

India will pay for 70 percent of Micron’s $2.75 billion packaging plant

Micron tips China packaging plan as politicians meet

Micron hit with ban on sales into Chinese ‘critical infrastructure’

If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :    eeNews on Google News


Linked Articles