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Micron: Market demand driven by COVID-19 may lead to memory chips shortage

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March 26, 2020

According to Reuters, memory chip maker Micron said yesterday that it expects revenue for the quarter to be higher than analysts expected. At the same time, Micron emphasized that due to the outbreak of the COVID-19 epidemic, most people work from home, which will stimulate market demand for notebook and data center services, thereby boosting demand for memory chips.

Micron CEO Sanjay Mehrotra pointed out that in January and February, China blocked many cities and adopted movement controls to prevent the rapid spread of the coronavirus. Over the same period, demand for gaming, e-commerce, and telecommuting stimulated China's data center business, all of which had explosive growth.

"Micron is moving from supplying smartphones to serving the data center market," Sanjay Mehrotra said. "At the same time, the current explosive demand may lead to a shortage of memory chips."

In fact, Samsung also expressed the same view last week. Samsung said that the pandemic would damage this year's smartphone and consumer electronics markets, but the demand for data centers will further promote the recovery of the memory chip market.

In addition, Micron also said that the company's two factories in Malaysia have been temporarily closed, and only limited basic production can be carried out according to local government orders.

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