Micron Faces Long Downturn as Samsung Keeps Investing
The memory chip markets are in severe oversupply, the worst imbalance since the financial crisis. The entire supply chain is drowning in inventory, and some manufacturers are aggressively cutting production and slowing down capital spending plans in efforts bring the situation back under control.
One of those manufacturers pulling back is Micron (NASDAQ: MU). The company expects capital expenditures related to wafer fab equipment to plunge more than 50% year over year in fiscal 2023, with the number falling further in fiscal 2024. Micron has also reduced wafer starts by around 20%, enacted major cost cuts, and is slowing the production ramp of new process nodes.
Micron isn't doing this in a vacuum. Some other manufacturers are taking similar measures, but it only takes one to spoil things. That spoiler this time around appears to be market leader Samsung (OTC: SSNL.F).
Source Fool.com
