“Inventory levels are high and they’re going to be higher,” CFO Mark Murphy said on the chipmaker’s Q4 earnings call.
What happened
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Why it matters
Semiconductor manufacturers have been reporting chip oversupply in recent months, fueled by declining demand for smartphones and PCs. Both Micron and Apple supplier Taiwan Semiconductor Manufacturing Company announced steps to adjust their inventory levels in July due to stagnant sales.
The CEO noted that overall demand has been negatively impacted by the war in Ukraine, COVID-19-related lockdowns in China and inflationary pressures that have hampered consumer behavior across segments. Global semiconductor sales in August dropped 3.4% compared to the July total, according to the Semiconductor Industry Association.
As a result of falling demand, Micron will enact plans it voiced in July to reevaluate its capital expenditure plans to save costs in the coming quarter.
This news brief is based on reporting published by Supply Chain Dive on 2022-10-05. The original report is linked below.
Supply Chain Dive
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