Micron cutting NAND and DRAM output to combat low prices

Posted on Tuesday, March 26 2019 @ 15:19 CET by Thomas De Maesschalck
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Micron told investors last week that it's cutting its DRAM and NAND production by 5 percent. The company says the demand isn't there and that they want to prevent having to sell at even lower prices. Micron will also reduce its planned capital expenses, thereby lowering future production output:
Owners or large data centers such as Alphabet Inc.’s Google and Amazon.com Inc.’s AWS have slashed orders as they worked through stockpiles of unused components.Micron makes chips used as the main memory in computers and as storage in mobile devices. The company said it would idle 5 percent of production for DRAM and NAND memory chips because of weaker demand and reduce its planned capital expenses in the fiscal year by about $9 billion.Chief Executive Officer Sanjay Mehrotra has been telling investors that a much broader set of customers will help insulate the industry from the brutal downturns that have wiped out profitability in the past.
Via: Yahoo News

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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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