Micron Announces Reduction of 5% Capacity to Stop Memory Prices from Falling

The price of memory has been falling for the past six months. The average selling price (ASP) for the quarter ended February 28, 2019 has fallen by 25% from the previous quarter. Now the price of the e-commerce platform is less than 300 yuan. All are. According to the current development trend, in the near future, it is very likely that the memory will return to the low price in 2016.

Consumers' installed costs have fallen, but memory makers are not happy. Micron recently announced the second quarter of the 2019 fiscal year (as of February 28) financial report: the quarterly revenue fell to 5.835 billion US dollars, compared with the same period last year, 20% less, also fell 26.3% from the previous quarter, for two years More to the first recession.

Looking ahead to the third quarter of FY 2019, Micron expects revenue to decline by about 17% to US$4.65 billion, and its gross profit margin will fall from 50% in the previous quarter to 37-40%.

The way semiconductor manufacturers stop falling memory chip prices is nothing more than cutting capacity!

A few days ago, Micron has announced plans to cut its DRAM and NAND flash products by 5% and cut capital spending by $500 million to offset the impact of falling memory prices.