Despite the ongoing shortage of non-memory chips and components, which is unlikely to improve as a whole until 2023, memory chip vendor Micron Technology remains optimistic about its sales outlook for fiscal 2022.
Micron is on track to post record-high sales with robust profitability in fiscal 2022, with a stronger second half of the fiscal year, according to company executive VP and chief business officer Sumit Sadana.
Certain non-memory chips and components will likely stay in short supply until 2023, Sadana said. For example, the ongoing analog chip shortage continues to affect adversely Micron's memory chip shipments for handsets and PCs, but the impact may start easing later in fiscal 2022.
The supply of power management ICs for DDR5 memory modules and SSD device controller ICs remains constrained, Sadana indicated. The chip shortages are unlikely to be relieved until logic foundries carry out their expansion projects for specific process manufacturing, Sadana said.
Uncertainty on the supply side persists, as it requires a period of time and significant investments for logic foundries to bring additional fabs online, Sadana noted.
Contamination affecting rivals' production will be dragging down the global NAND flash industry's bit supply starting the second quarter of 2022, with the impact of the event on the supply side unlikely to ease in the short term, Sadana indicated.
Contamination of materials used in flash chip production is affecting output at Kioxia and WD's JV fabs in Japan. WD expects the impact to result in a shortage of at least 6.5 exabytes in flash storage availability.
Nevertheless, Micron is optimistic about demand for both its DRAM and NAND flash products in 2022, according to Sadana. Micron and its fellow competitors are gearing up for their DDR5 chip output ramp-ups starting this year, while demand for cloud-computer servers and automotive will be brisk.
Sadana reiterated Micron's guidance for the second quarter of fiscal 2022, with revenue estimated at US$7.5 billion, plus or minus US$200 million, and gross margin at about 46%. Micron reported revenue of US$7.7 billion for the fiscal first quarter ended December 2, 2021, up 33% on year.