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Micron announces capacity reduction to stop memory chip prices from falling

SemiMediaEdit
March 25, 2019

Micron recently announced its earnings report for the second quarter of fiscal year 2019 (as of February 28). According to the earnings report, Micron's revenue for the quarter fell to 5.835 billion US dollars, 20% less than the same period last year, and also fell 26.3% from the previous quarter.

A few days ago, Micron has announced plans to cut its DRAM and NAND flash products by 5% and capital expenditures by $500 million. The industry believes Micron is cutting capacity to offset the impact of falling memory chip prices.

According to industry insiders, Micron's production cuts have a positive impact on the overall industry, regardless of whether there is any effect in the short term, and more importantly, in the long run, this represents the rational competition of the industry. It is expected that the decline in DRAM prices may gradually shrink in the second quarter.

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