Amid persistent memory shortages and climbing contract prices, Micron has seen remarkable growth in its revenue and gross profit, and has signed long-term strategic contracts with clients. Micron has also sharply increased its capex to expand manufacturing plants, while steadily pushing forward its High Bandwidth Memory (HBM) development and process technology advancements. In addition, memory makers, including Micron, are proactively optimizing their current capacity to maximize output value.

Key Highlights

• Market Dynamics: negotiations for contract prices will take longer as they are discussed alongside long-term agreements (LTAs). However, ongoing shortages would once again drive up contract prices, thus further lowering overall level of market inventory. Momentum of spot market remains constrained by price inversion.
• Financial Performance: Benefiting from price hikes, Micron saw significant growth in revenue and margins. Strong demand for servers drove outstanding performance in the cloud segment, while the overall supply chain still lingers in shortages.
• HBM & Technology: The latest generation of HBM has entered mass production, and samples of next-generation products have been submitted. Advanced nodes are increasing the adoption of EUV technology.
• Capex & Strategy: Micron revised its Capex upward for fab construction to address capacity constraints. DRAM suppliers are maximizing capacity value through node transitions, space reallocation, as well as the integration of R&D and mass production lines.

Table of Contents

1. Market Update
2. TrendForce’s View
   • Micron's Consolidated Gross Margin (Encompassing DRAM and NAND Flash)

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