As we all know, the technology industry has always been one of the most successful industries in the United States. However, under the influence of many factors such as the downward pressure on the global economy this year, the spread of global inflation and the Federal Reserve interest rate , the U.S. technology industry has suffered a huge impact.
While technology companies are setting off a wave of layoffs, the United States' bullying of other countries in the technology field has also caused backlash on itself. For U.S. technology companies, the pain of winter has just begun.
supply and demand imbalance, Micron Technology poor performance in the first fiscal quarter
12html June 22html June 6, Micron Technology announced that it will lay off approximately 10% of its employees in 2023, and will suspend bonus payments for 2023. It is understood that Micron Technology has approximately 4.80,000 employees, and the layoff of 10% means that 4800 people will be unemployed.
On December 21, Micron Technology announced its first quarter financial report for fiscal year 2023, but both revenue and earnings per share fell short of market expectations.
(Source: Zitu.com)
's financial report showed that the company's revenue fell short of market expectations of US$4.11 billion. decreased by 47% year-on-year to to US$4.09 billion, with a net loss of US$195 million, compared with a net profit of US$2.306 billion in the same period last year. As soon as the financial report was announced and the news of layoffs came out, the company's share price fell more than 2% in after-hours trading.
And Since this year, Micron share price has fallen by 45%, a decline greater than that of most chip stocks.
Micron is not optimistic about its performance in the next quarter, predicting that its revenue in the second fiscal quarter will be approximately US$3.8 billion. This was not only lower than revenue in the first fiscal quarter, but also lower than the consensus estimate of $3.88 billion. The loss per share was approximately $0.62, which was much higher than the $0.29 forecast by the market.
It is understood that Micron is cutting the budget for new factories and equipment due to the imbalance between supply and demand.
(Source: Zitu.com)
The company had previously expected expenditures for this fiscal year to be as high as 12000 million, but now it has been significantly reduced to 7000 million to 7500 million. Moreover, Micron has also slowed down the introduction of more advanced manufacturing technologies, predicting that industry-wide spending on new production will also decline.
Although it is the largest manufacturer of memory chips in the United States, Micron Technology, like other technology companies, is facing performance losses and plummeting market value, and has to make adjustments to the company's future development direction. In October, Intel announced layoffs as part of a $10 billion spending reduction plan, and Qualcomm announced a hiring freeze in November.
Technological bullying reaps its consequences, and the U.S. technology industry is in a cold state.
Incomplete statistics show that in the first six months of this year, 11html, U.S. technology companies laid off a total of The number of employees increased by 4535% year-on-year, reaching 780978, and the scale of layoffs hit a 6-year high.
Since the beginning of this year, many technology companies in the United States have launched unprecedented layoff plans, especially reaching their climax in November.
Online payment company Stripe and ride-sharing company Lyft announced layoff plans of 14% and 13% respectively. Twitter confirmed that about 50% of the company's employees were laid off, and more than 11,000 Meta employees will be laid off. Then Amazon said that its layoff plan will continue until 2023.
U.S. companies announced layoffs of 76835 people in 11, and the technology industry has laid off 52771 people. The powerful American locomotive was braked.
(Source: Zitu.com)
What is different from the cold weather in the United States is that China, which has been suppressed by the country in the field of science and technology, has shown a unique competitive advantage.
In September this year, the United States asked the country's manufacturing industry not to use Chinese chips. However, China's ultra-low prices attracted American manufacturing companies to use Chinese chips one after another. Although the United States finally revised its restrictions and only required that key chips cannot use Chinese chips, the export volume of Chinese chips still increased by more than 20%.
It is obvious that in such an environment, Chinese chips may be more competitive and better able to survive the current chill in the industry. On the contrary, it may be more difficult for American chips to survive because of their high cost. Such a sharp contrast has made the American media lament the competitiveness of Chinese chips, and the United States can only reap the consequences.
Text | Wei Yansong Title | Huang Zixin Review | Zeng Yi
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