Chips war with China come back to haunt US

Chips war with China come back to haunt US. Micron Announced: 4,800 Layoffs! Stop Paying Bonuses! 與中國的芯片戰爭再次困擾著美國。 美光宣布：裁員4800人！ 停止支付獎金！

On December 21, storage chip major Micron announced its results for the first quarter of fiscal year 2023 ending December 1, 2022. Affected by the continued decline in the memory chip market, Micron's revenue plunged 46.8% year-on-year in the quarter, and net profit also posted a loss. At the same time, Micron also announced plans to lay off about 10% of its workforce next year, with 4,800 employees expected to be affected.

According to the earnings report, Micron's revenue for the first quarter of fiscal 2023 was $4.09 billion, a 46.8% plunge from $7.69 billion in the same period last year and a 38.4% decline from $6.64 billion in the previous quarter. Cash flow from operations was $943 million, compared to $3.78 billion in the previous quarter and $3.94 billion in the same quarter last year.

Obviously, Micron's first quarter results for fiscal 2023 were very ugly and Micron's losses will probably continue into next year.

As the current Russia-Ukraine conflict is still not over, global inflationary pressure still exists, coupled with geopolitics, epidemics and other factors, resulting in corporate and consumer savings, continued to impact the PC and smartphone market demand. This follows Micron's announcement in November that it would reduce all DRAM and NAND wafer production by approximately 20% and further cut capital expenditures. This is a bit more than the 30% reduction in capital expenditures for 2023 previously announced in September.