Shulou(Shulou.com)11/24 Report--

According to news in the morning of September 30, Beijing time, it was reported that earlier this year, US semiconductor manufacturer Micron Technology issued a warning against the decline in global demand for PC and smartphone chips. Micron is also the first semiconductor manufacturer in the industry to do so.

On Thursday, local time, Micron Technology reiterated its position when it released its results, saying that the future demand for memory chips and the company's operation will face more serious difficulties, and the company will cut back on its investment plans.

Sanjay Mehrotra, the company's chief executive, also said Micron had already slashed its capital expenditure, which is now expected to be $8 billion in fiscal 2023, down 30 per cent from the previous year. However, for the second half of fiscal 2023, Micron expects strong revenue growth, and the company predicts a recovery in global demand for memory chips early next year.

Micron shares fell 1.5% in after-hours trading in u.s. stocks. New Year's Day's share price has been cut off so far this year, falling by as much as 45 per cent.

It is reported that historically high inflation and higher interest rates by central banks have caused companies and consumers around the world to rein in spending, directly hitting the two major markets of personal computers and smartphones.

Micron said it would cut its investment in chip packaging equipment in half in the new fiscal year. Shares in applied materials, a semiconductor equipment maker, fell 2 per cent in after-hours trading on the news.

Matt Bryson, an analyst at Wade Bush Securities, said that traditionally, storage semiconductor manufacturers have cut production targets and capital spending, which is an important sign that the global memory chip market is facing quite poor fundamentals.

Kinngai Chan, an analyst at Summit Insights Group, adjusted Micron's stock rating to give a buy rating. The analyst gave the reason that Micron's business will be bright in a few quarters.

Micron's adjusted revenue for the fourth quarter (June, July and August) ended on September 1 was $6.64 billion, slightly below the $6.68 billion forecast by Wall Street analysts, according to earnings data. For the current first quarter of fiscal 2023, Micron expects revenue of $4.25 billion (within the range of $250 million), significantly lower than the $5.62 billion forecast by Wall Street analysts.

In the fourth quarter, Micron posted net income of $1.45 a share, beating analysts' forecasts of $1.30. For the first quarter, Micron forecast net income of 4 cents a share (within 10 cents), well below the 64 cents expected by Wall Street analysts.

Meguiar said the current challenges in the memory chip market were "unprecedented", but the company's management believed that the advantage of enterprise size would help Micron tide over it.

Recently, smartphone makers, including Apple, have cut production targets, adding to the difficulties faced by Meguiar, according to Richard Barnett, a US technology professional.

Sumit Sadana, Micron's chief business officer, said what was really surprising was the extent of the collapse in the global memory chip market.

Micron has cut its forecast for growth in PC and smartphone memory chip sales by a few percentage points in the past few months, Sadana said. The executive said that in 2022 (a natural year), the company's sales of PC memory chips will fall by about 20% compared with last year, and sales of smartphone memory chips will decline by nearly 10%.

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