Micron Doom and Gloom

[kh812000]

"The company said that the industry is experiencing the “most severe imbalance between supply and demand in both DRAM and NAND in the last 13 years.”

Did Micron just pour cold water on the entire semiconductor industry? Cutting 10% of workforce, massive drop in demand, losing money and will continue to do so through 2023, "loss of pricing power", shifting technology node out a year, cutting supply and hoping Samsung will follow suit to bring supply/demand back into balance (seems like wishful thinking)....

Thank you Federal Reserve and in power politicians...

Micron to layoff 5,000 employees in 2023

A world leader in innovative memory solutions, Micron will be laying off nearly 5000 employees. The company currently has 48,000 employees.

sightsinplus.com

 

[Mooredaddy]

Micron to layoff 5,000 employees in 2023

A world leader in innovative memory solutions, Micron will be laying off nearly 5000 employees. The company currently has 48,000 employees.

sightsinplus.com

"The company said that the industry is experiencing the “most severe imbalance between supply and demand in both DRAM and NAND in the last 13 years.”

Did Micron just pour cold water on the entire semiconductor industry? Cutting 10% of workforce, massive drop in demand, losing money and will continue to do so through 2023, "loss of pricing power", shifting technology node out a year, cutting supply and hoping Samsung will follow suit to bring supply/demand back into balance (seems like wishful thinking)....

Thank you Federal Reserve and in power politicians...

Micron operates in the memory business which has little differentiation and therefore pricing power. The memory side is much more sensitive to the cycle then logic and in particular leading edge logic. That said I believe the worst is either right now or Q1 next year for memory. 2024 should be a good year IMO. Again if you are long term none of this matters. Micron will be around in 10 years time

 

[Xebec]

Agree with Mooredaddy. There are a lot of reasons why memory is going to be in a rough spot today/2023:

- Mass buying of laptops/consumer devices/computers for school and corporate “from home” use in 2020-2021 is leading to extra low demand now. (Market is satiated). That affects both RAM and NAND storage.
- The overall economy is worsening — globally for a lot of reasons, further depressing demand.
- We’re out of cycle for quite a few launches - Q1 is always traditionally weak
- The PC market is transitioning to DDR5 which is more expensive, and the performance uplift doesn’t justify immediate purchase (especially given the Covid induced refresh cycle)
- Capacity burn down always lags a bit
- Intel dropped it’s Optane division dumping some amount of ‘special memory’ on the market at low prices

 

[blueone]

Cutting 10% of workforce

And suspending 2023 bonuses, which I believe at Micron is equivalent to an across the board pay cut.

 

[blueone]

- Intel dropped it’s Optane division dumping some amount of ‘special memory’ on the market at low prices

I can't believe Optane is a significant factor in the DRAM or NAND markets. The Itanium of memories.

 

[Xebec]

I can't believe Optane is a significant factor in the DRAM or NAND markets. The Itanium of memories.

LOL fair — I was just trying to pile on that there are a lot of things going on (both big and small) .. In any case Optane failing means there’s just a little less enthusiasm for memory technologies at the moment..