In publishing its fiscal third-quarter results, computer memory and data storage maker Micron found that it expects shortages of DRAM and NAND to continue into next year. At the same time, in a separate press release, the company announced that it had reached a final agreement with Texas Instruments for the sale of one of its manufacturing plants in Lehi, Utah, where it previously made Xpoint 3D chips through a partnership with Intel. . The sale of the plant is valued at €XNUMX billion by Micron and in total the company is to receive €XNUMX million in cash from Texas Instruments and roughly €XNUMX million worth of certain tools and other assets.
Scarcity vs demand
In the third month of this year, Micron warned of a "series of under-supply" of DRAM chips across the industry, and demand for these chips has so far increased by twenty percent this year. Regarding NAND chips, the company warned that demand is increasing "viciously from low to medium by 1%", although there is still an oversupply. In a recent presentation, Micron updated its previous position by stating that "industry" demand growth for bits is expected to be a little over XNUMX%, while there is still unmet demand for DRAM. However, the company expects the current DRAM shortage to continue into the coming year and this is also true for NAND chips, which are also growing at the same rate. Despite this shortage, Micron was still able to produce €XNUMX billion in revenue in the third quarter of this year. Micron CEO Sanjay Mehrotra provided more information on the company's fiscal third quarter results in a press release, saying: “Micron set multiple product and market revenue records throughout our third quarter and achieved the largest sequential earnings improvement in our history. Our industry-leading XNUMXα DRAM and XNUMX-layer NAND are now a significant part of our production, and Micron is best positioned to capitalize on long-term demand trends in the data center, user and also smart edge. Via ZDNet