chips has led to widespread shutdowns in the automotive industry. According to statistics, global production will be reduced by more than 10 million vehicles in 2021. However, it is precisely due to the increase in demand caused by chip shortages that Micron's quarterly report for the first fiscal quarter exceeded Wall Street's expectations, and it is predicted that the second fiscal quarter will still be higher than expected. However, the chip shortage has also led to a shortage of Micron DDR5. Micron executives believe that memory chip will gradually be alleviated in 2022. Expectations for the full fiscal year 2022 cannot be predicted at this time.
First-quarter results were better than expected
Micron Technology announced its first-quarter financial results, which were better than Wall Street expectations because data centers and electric vehicles require a large number of chips. Micron expects its second-quarter results to still be higher than expected, and the chip shortage will ease in 2022. Micron has signed agreements with suppliers to resolve supply chain issues. Micron produces NAND chips for the data storage market and DRAM chips for use in data centers, PCs and other equipment. After the
financial report was released, Micron's stock price rose 5.7% after hours, hitting $87.70. With global demand for chips, Micron can charge higher prices. According to Micron, revenue from data centers has increased by 70%, and revenue from the automotive industry has increased by 25%. More and more cars are equipped with advanced driving safety systems, which require a large number of memory chips.
Micron Chief Commercial Officer Sumit Sadana noted that the shortage of non-memory chips is expected to slowly ease next year. Chip shortages have already affected shipments of cars and PCs. Sadana said: "The shortage situation will be slightly better at the beginning of next year. If you want to see big improvements, it may depend on the entire 2022."
Micron expects revenue in the current second quarter to be between 7.3 and 7.7 billion US dollars, analysts' estimates Estimated at $7.27 billion. Micron's revenue in the first quarter was US$7.69 billion, higher than analysts' expectations of US$7.67 billion.
DDR5 out of stock due to shortage of PMIC and VRM
During the quarterly earnings call, Micron confirmed that the lack of DDR5 memory in the retail industry is not due to a shortage of DDR5 memory ICs, but due to a shortage of PMIC and VRM components. Micron said demand for DDR5 products has significantly exceeded supply as shortages of non-memory components have affected memory suppliers' ability to manufacture DDR5 modules.
DDR5 demand ended up being higher than expected due to the popularity of Intel 's Alder Lake CPUs. DRAM module manufacturers did not prepare enough inventory of the new components needed to make DDR5 DIMMs. This resulted in DDR5 modules currently being sold at retail. lack in.
Micron is working hard to solve this problem and has signed what it calls a "strategic agreement to ensure the supply of certain components." The supply of the above components is expected to slowly improve in 2022. It looks like some of these components are also related to other products made by Micron, such as the SSD .
Editor: EditorLL
