Micron Technology reports sales of $7.69 bn in first quarter

Micron Technology has reported sales of $7.69 billion in the first quarter of fiscal 2022 as demand for its memory chips has surged on the shift to remote working during the pandemic as well as 5G smartphone upgrades and electric vehicles.
Micron TechnologyMicron Technology on Monday delivered stronger quarterly results in the first quarter of fiscal 2022, which ended Dec. 2, 2021, as data centers and electric vehicle manufacturers drove demand for its chips.

Micron also disclosed that it has struck deals with its own suppliers to ease bottlenecks in its supply chain.

The company makes both the NAND memory chips that serve the data storage market and the DRAM memory chips that are widely used in data centers, personal computers and other devices.

Performance by Technology

DRAM
▪ The combination of 1-alpha and 1z DRAM nodes represents the majority of DRAM bit production
▪ Planning for volume DRAM production on EUV in 2024 with our 1-gamma node
▪ Integrating EUV with our existing multi-patterning immersion lithography expertise will help maintain DRAM technology leadership for many years to come
▪ 73 percent of total revenue in FQ1-22
▪ Revenue down 8 percent Q/Q and up 38 percent Y/Y
▪ Bit shipments down mid-single-digit percent range Q/Q ▪ ASPs down lower-single-digit percent range Q/Q

NAND
▪ 24 percent of total revenue in FQ1-22 ▪ Revenue down 5 percent Q/Q and up 19 percent Y/Y ▪ Bit shipments were approximately flat Q/Q ▪ ASPs down mid-single-digit percent range Q/Q
▪ 176-layer NAND now accounts for the majority of our NAND bit production
▪ Transitioned to replacement gate
▪ Roadmap to scale for several generations while leveraging our leadership in CMOS under array and QLC to maintain bit density leadership

Strong demand and an industry-wide shortage of the chips have also allowed Micron, one of the world’s biggest memory chip suppliers, to charge higher prices. Micron said data center revenue grew 70 percent and that automotive revenue grew 25 percent, with the automotive growth coming from the increasing amount of memory required in cars with advanced driver safety systems.

Sumit Sadana, Micron’s chief business officer, told Reuters that Micron officials expect the non-memory chip shortages will start to ease next year. The shortages have been stifling shipments of both cars and personal computers.

Micron said over 75 percent of revenue comes from volume-based annual agreements, a significant increase from around 10 percent of revenue they represented five years ago

Micron has entered into strategic agreements to secure supply of certain components to manufacture our products; as a result of these agreements, the current tight supply of these components is expected to gradually improve for us throughout calendar 2022.

The company expects revenue for the current fiscal second quarter to be $7.5 billion, plus or minus $200 million.