Page 20 - november_ 22_102722aa.indd
P. 20
TAP TIMES -20- NOVEMBER 2022
Memory (from 19) latest earnings report was released.
to the state’s “Potato King,” the late John Reduced capital spending
Richard Simplot, who was an early and Micron president Sanjay Mehrotra said
much-needed investor in Micron. capital spending in fiscal 2023 will be re-
duced by about $8 billion, or more than 30
IC’s top Idaho’s exports percent with a 50% spending cut on fab
While potatoes and agriculture are certain- equipment.
ly important to Idaho, agriculture is not
even in the top 10 of Idaho’s exports, that Although the DRAM triumvirate has cap-
ranking belongs to ICs.
tured 94% of the seller’s market, recent
As befits one of the top suppliers of semi- earnings reports from smaller players,
conductors, Micron has been doing quite such as Taiwan’s Nanya Technologies, are
well for the past several years. not promising — particularly for equipment
sellers.
For fiscal 4Q22, which ended Sep. 1, 2022,
the company posted a GAAP revenue of This month Nanya announced results for
$6,643 billion compared to the prior quar- its 3Q22 ended September 30. Its sales
ter’s $8,642 billion. For fiscal 2022, Micron for the quarter amounted to NTD 11,022
posted revenue of $30.76 billion, GAAP net million ($343,114), a 38.9% decrease
income of 8.69 billion and an eps of $7.75, over 2Q22 revenue.
versus revenue of $27.71 billion.
Taiwan dollar depreciated
Micron cautions about oversupply Nanya noted that in 3Q22, the average
On September 29, Micron announced that selling price of DRAM fell by the low 20
it was taking “unprecedented steps” to percent range. The New Taiwan dollar was
emerge from the current memory-market depreciated, but this had a positive effect
downcycle. on Nanya’s revenue.
Barely a month earlier, Micron announced Like Micron, however, Nanya said its capi-
it was adding a new memory fab in Boise tal spending “is expected to be further
at a cost of $15 billion. On October 4, it reduced to NTD 22 billion ($690 million)
disclosed it had selected upstate New Yorki from NTD 28.4 billion ($889 million), a
for another fab site where it would also decrease of about 22.5%.
build new fabs.
next page
The company also said it expected to in-
vest $100 billion by the end of this de-
cade. Among the steps it was taking due
to oversupply, said Micron, was to reduce
capital spending.
“Inventory levels are high and they’re go-
ing to be higher,” said Mark Murphy, Mi-
cron’s CFO on a conference call with fi- This is Kloxia’s NAND fab in Yokkaichi, Japan. The name was
nancial analysts after the company’s changed from Toshiba Memory in 2019. The company is the sec-
ond largest vendor of NAND after Samsung. (Toshiba)
