Jun 30, 2023 /SemiMedia/ -- Micron mentioned in its latest financial report that industry shipments of DRAM and NAND will be stronger in the second half of this year, driven by long-term data growth and continued improvement in customer inventory.

Industry demand forecasts for 2023 remain low, but the sharp reduction in supply across the industry has begun to stabilize the market, Micron said.

In November last year, Micron announced that it would cut memory chip production by 20%. According to Micron's financial report, Micron focuses on inventory management and supply control, and has recently further reduced the operating rate of DRAM and NAND wafers to nearly 30%, and the production reduction is expected to continue until 2024.

Micron said year-over-year supply growth for both DRAM and NAND is expected to negatively impact the industry in 2023, as industry-wide utilization and capex cuts impact supply growth. While the supply-demand balance is improving, profitability and cash flow will remain extremely challenging for some time due to excess inventory. If industry production is reduced further, and these reductions continue into 2024, the market recovery could accelerate. Micron expects to produce less NAND in 2023 than in 2022.