Micron Technology is reducing DRAM and NAND wafer starts by approximately 20 percent versus fiscal fourth quarter 2022 — in response to market conditions.
These reductions will be made across all technology nodes where Micron has meaningful output. Micron is also working toward additional Capex cuts. In calendar 2023, Micron now expects its year-on-year bit supply growth to be negative for DRAM, and in the single-digit percentage range for NAND.

Recently, the market outlook for 2023 has weakened. Micron believes that DRAM bit supply will need to shrink and NAND bit supply growth will need to be significantly lower than previous estimates in order to significantly improve total inventory in the supply chain.

“Micron is taking 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 Micron 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.”