Micron says the outlook for calendar year 2023 has continued to weaken.
Photo:
Steve Helber/Associated Press
Micron
MU -4.73%
Technology Inc. said it is scaling back production of its chip wafers, citing market conditions as the industry grapples with softening demand.
Wafers, one of the main components in electronic devices, are thin slices of semiconductor material used in fabricating integrated circuits.
The company said it expects production starts of wafers for the two major types of memory chips, called DRAM and NAND flash, to be about 20% lower than in the recently ended quarter. Micron said it is working on further cutting capital expenses.
Micron said the outlook for calendar year 2023 has continued to weaken. The company now expects supply growth for its DRAM memory chips to fall next year and to see an increase of a single-digit percent for its NAND flash chips, Micron said.
“We will continue to monitor industry conditions and make further adjustments as needed,” Chief Executive
Sanjay Mehrotra
said.
Shares of Micron fell more than 4% to $60.40 a share in morning trading.
The chip industry broadly has pivoted in recent months from a clamor for higher output to cost cutting as companies adjust to a slump in demand for semiconductors. In September, Mr. Mehrotra warned that “an unprecedented confluence of events has affected overall demand.”
Write to Will Feuer at will.feuer@wsj.com
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