Micron’s DRAM supplies take a hit after Taiwanese earthquake

Micron’s concerns: Micron Technology, a memory chip manufacturer, announced on Thursday that the earthquake in Taiwan on April 3 would impact approximately one-quarter of its dynamic random access memory (DRAM) supply by up to a mid-single-digit percentage.

With operations in four locations in Taiwan, a critical hub in the global chip supply chain, concerns arose regarding potential disruptions caused by the earthquake. Although Micron clarified that it has not yet reached full DRAM production post-earthquake, it assured stakeholders that there would be no long-term impact on its DRAM supply capabilities.

DRAM, integral to data centres, personal computers, smartphones, and various computing devices, faces a supply challenge due to the earthquake's effects.

Investors have shown keen interest in Micron's stock, driven by escalating demand for its chips, particularly from the thriving AI industry. In February, Micron commenced mass production of its high-bandwidth memory (HBM) chips for Nvidia's H200 graphics processing units, crucial for AI applications.

CEO Sanjay Mehrotra disclosed in March that the company's HBM chip inventory for 2024 is fully booked, with a significant portion of the 2025 supply already allocated. While Micron previously referred to HBM chips as a stacked DRAM technology, it did not specify whether the earthquake would impact HBM chip supplies.

(With Reuters inputs)