According to media reports, Micron plans to cut its annual spending by about $1.25 billion and reduce chip production for products in applications such as cars, smartphones and data centers, because Micron believes that market demand is lower than expected in these areas.

Micron CEO Sanjay Mehrotra said that the market weakness of high-end smartphones is seasonal, and market demand will pick up in the second half of 2019. However, in order to adapt to the current market conditions, Sanjay Mehrotra said that Micron will reduce the production of DRAM and NAND chips.

Sanjay Mehrotra stressed that he expects DRAM production to grow by about 15% in 2019, lower than the previous forecast of about 20%. Demand for the NAND market is expected to increase by about 35% this year, down from the previous forecast of 35% to 40%.