Technology

Micron: power outages and earthquakes in fabs will reduce DRAM supply and affect prices

According to the news, Macron stated in a financial conference call that the power outage and earthquake in 2020 will affect its factory in Taiwan, China, and will decrease the shipment of memory chips, leading to this year Memory prices rose in the first quarter.

Micron’s wafer processing plant No. 11 suffered a power outage for more than an hour on December 3, 2020, and then suffered an earthquake on December 10, forcing it to be placed at the wafer plant No. 11 near Taoyuan and near Taichung City. Plant No. 16 shut down.

Micron’s CEO Sanjay Mehrotra said in the financial conference call, ‘Our past investment in factory redundant design and cleanroom control has greatly reduced the impact of these two events, but it will still affect our DRAM memory chip supply. Have a negative impact on our costs.’

DRAM memory chips account for about 70% of Micron’s revenue. The company’s revenue in the first quarter of last year was US$5.773 billion. Micron also said that GDDR6/6X video memory shipments are growing rapidly, and HBM2E video memory is also in continuous production.

Currently, there is no shortage in Micron’s supply chain. It is expected that the impact of the previous two accidents in the first quarter of 2021 will be limited.

(Source)

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