Micron: Cuts Memory Investment to Prevent Price Falls

Bloomberg reported that Micron CEO Steve Appleton recently stated that in order to avoid the price drop caused by excess capacity in 2010, the capital expenditures of memory chip makers this year will be very conservative.

Steve Appleton said at an analyst meeting in Arizona that last year the memory industry's frenzied investment situation will not recur. He expects this year's DRAM chip industry's overall capital spending will decline, although it may affect the volume of orders, but it will reduce the risk of supply surplus.

Micron is currently the only U.S. manufacturer to produce computer memory chips. Their goal is to make up for the imbalance in revenues and expenditures that occurred in 2007-2009. As chip prices fell below the production cost, this led to a multi-billion-dollar deficit in Micron's financials. . Of course, it is not just the Micron family that has lost money. Taiwan's memory chip makers have been unwilling or unable to increase production capacity.

But Robert W., an investment firm in San Francisco. Baird analyst Tristan Gerra expressed optimism that he believes that the vicious cycle that has occurred in the past will not be repeated and that memory vendors will eventually survive. The current downturn will sooner or later stay away from the memory chip industry.