Memory Shortages Aplenty, Says Micron CEO, Looking to AI, 5G
Micron Technology’s DRAM business is in a “severe shortage,” but its NAND market “is showing signs of stabilization,” said CEO Sanjay Mehrotra on a Wednesday call for fiscal Q2, ended March 4. Smartphone unit sales “are expected to show robust…
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growth,” said Mehrotra. Micron expects “to benefit from higher content in 5G phones, which are forecast to double in calendar 2021 to more than 500 million units,” he said. Fiscal Q2 revenue in Micron’s mobile business unit was $1.8 billion, 44% higher than in the year-earlier quarter, said Chief Financial Officer Dave Zinsner. “Mobile demand remains strong as 5G momentum increases and the mobile market continues to recover from the impact of the pandemic.” Total Q2 revenue of $6.24 billion gained 30%. The PC business benefits "from the remote work and learning trend that drove healthy notebook and Chromebook demand” in fiscal Q2, said Mehrotra. COVID-19 drove “changes in our economy that we believe will not only benefit us this year, but also serve to accelerate the digital transformation of the economy and drive new opportunities for Micron,” he said. “Recovery from the pandemic and pent-up demand are expected to drive strong demand growth in markets such as enterprise, cloud, desktop PCs, mobile, auto and industrial.”