© Reuters. FILE PHOTO: The main entrance to Micron corporate headquarters in Boise, Idaho, February 3, 2012.REUTERS/Brian Losness/File Photo
(Reuters) -Micron Technology Inc said on Wednesday it will reduce memory chip supply and make more cuts to its capital spending plan, as the semiconductor firm struggles to clear excess inventory due to a demand slump.
Shares of the company fell nearly 4% in early trading.
Micron (NASDAQ:) was the first major chipmaker to sound an alarm about falling demand for PCs and smartphones earlier this year in the face of decades-high inflation.
“In order to significantly improve total inventory … DRAM bit supply will need to shrink and NAND bit supply growth will need to be significantly lower than previous estimates,” the company said.
Micron is reducing DRAM and NAND wafer starts – or the initial process in semiconductor production – by about 20% compared with the fourth quarter that ended on Sept. 1.
For 2023, the company expects its year-on-year bit supply growth to be negative for DRAM and in the single-digit percentage range for NAND.
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