In recent weeks, it has become evident from the reports, forecasts and statements of the major players in the chip industry that many companies are in big trouble due to the trends of recent years, as well as the sudden and sharp drop in demand, inflation and recession fears.
Micron has indicated several times that it is preparing for a difficult continuation, and now it has said that the future will be even tougher than expected, and that they are already reducing their investments by more than 30 percent.
The overall picture and the statements are shaded by the fact that strong sales growth is still expected in the second half of the 2023 financial year, and demand may pick up again next year.
Micron, which has lost around 45 percent of its stock market value this year, is reducing its investments related to devices supporting wafer production by 50 percent anyway.
According to experts, high inflation, geopolitical tensions, and Chinese lockdowns have led to companies and consumers trying to curb spending. This has a negative impact on both the PC and mobile markets, and Apple’s previous expectations regarding iPhone demand also turned out to be exaggerated.
According to Micron, the current market challenges are unprecedented, but they are confident that they will successfully navigate the market.