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Micron expects to reduce memory chip supply in 2023

Micron Technology Inc. said Wednesday it will reduce memory chip supplies and make more cuts to its capital spending plans as the semiconductor company struggles to clear excess inventory caused by low demand.

The company’s stock fell nearly 4 percent in early trading.

Micron is the first major chipmaker to sound the alarm about falling demand for personal computers and smartphones since earlier this year due to high inflation.

“In order to significantly improve total inventory . . the supply of DRAM bits will need to be scaled back and the supply of NAND bits will grow significantly below previous forecasts,” the company said.

Micron is reducing DRAM and NAND wafer starts — or the initial process in semiconductor production — by about 20 percent compared with the fourth quarter that ended Sept. 1.

For 2023, Micron expects its DRAM bit supply to show negative year-over-year growth and NAND bit supply to show single-digit percentage growth.

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