Micron says global COVID-19 epidemics may affect the DRAM, 3D NAND supply chain

This spring, the production of chips and display panels in Taiwan was severely affected by drought. Chip manufacturers such as TSMC, UMC, and Micron have to use various methods to ensure the supply of water for production in order to reduce the impact on the production. Sanjay Mehrotra, President, and CEO of Micron stated in an earnings conference call with analysts and investors that it has successfully alleviated the impact of the drought in Taiwan. Micron’s production capacity has not been reduced. At the same time, there has been precipitation in the near future, and there should be enough water supply to meet Micron’s manufacturing needs.

However, in today’s manufacturing industry, the supply chain may spread all over the world, making production more uncertain. Recently, the COVID-19 epidemic in Taiwan, India, Malaysia, and other regions has become serious, and it has cast a shadow on the supply and business prospects. Micron is currently responsible for the production of DRAM chips in a wafer plant in Taiwan, and a wafer plant in Singapore responsible for the production of 3D NAND chips. It has testing, packaging, and assembly operations in Malaysia, and has R&D facilities in India. Micron had to reduce production capacity because of the seriousness of the COVID-19 epidemic in Malaysia to ensure production safety.

The recurrence of the COVID-19 epidemic in different regions seems to be only a short-term problem, but the general high demand for chips and the uncertainty of supply are enough to affect the 3D NAND and DRAM chips in the next few quarters. Micron said that the semiconductor industry can hardly meet the demand for chips in the next few quarters, and it is expected that the supply will continue to be tight in the fiscal year 2022, placing Micron in the best position ever.