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Micron Japan plant power failure, expected to affect the scale of capacity is limited

Update time : 2022-07-14 13:55:00

Micron's Japanese plant in Hiroshima experienced a power failure on July 8. According to TrendForce's survey, the plant's monthly capacity accounts for about 30% of Micron's monthly capacity in the third quarter, and about 7% of the global capacity. The main process in production is 1Z nm, which accounts for more than 50% of the chip production, followed by 1Y nm, which also accounts for nearly 35%. As the power jump occurs, the machine also starts the non-stop system at the same time, but due to the pressure drop, the machine needs to restart and check, and the power jump time is about 5~10 minutes, so the affected capacity is limited.

The plant is mainly a R&D center for R&D, and the next generation process 1beta nm will be put into production in the plant as a priority. According to TrendForce, the global demand for consumer electronics has been weak due to geopolitical conflicts and high inflation since the beginning of the year, which has led to high memory inventory levels at the original manufacturers, and the impact of the power failure on Micron's production capacity is low. Therefore, there is no impact on the overall DRAM supply and demand market.
TrendForce has also observed that the spot market, which has always reacted to market conditions in real time, has not seen any increase in demand or urgent orders from customers since the jump, and the price side has not sent any signal to stop the decline, so the jump is not expected to reverse the oversupply of DRAM. This means that DRAM prices will drop by about 10% in the third quarter.

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