Micron Technology faces DRAM supply impact after Taiwan earthquake

Micron Technology, a leading memory chipmaker, has announced that the recent earthquake in Taiwan on April 3 will impact a significant portion of its dynamic random access memory (DRAM) supply for the current calendar quarter. The company, with operations in four locations in Taiwan, emphasized the crucial role of Taiwan in the global chip supply chain. While the earthquake has caused concerns about potential disruptions, Micron assured that its long-term DRAM supply capability will not be affected.

DRAM is a vital component used in data centers, personal computers, smartphones, and various computing devices. Micron's stock has seen a surge in investor interest due to the high demand for its chips, particularly from the rapidly growing artificial intelligence (AI) industry. In February, Micron commenced mass production of its high-bandwidth memory (HBM) chips designed for Nvidia's H200 graphics processing units used in AI applications.

The company's HBM chips, integral for AI application development, have already been sold out for 2024, with a significant portion of the 2025 supply already allocated. Micron's CEO, Sanjay Mehrotra, highlighted the strong demand for HBM chips and the company's commitment to meeting it. Micron's HBM chips are based on stacked DRAM technology, offering advanced capabilities for AI applications.

While Micron did not provide specific details on the impact of the earthquake on its HBM chip supplies, the company remains focused on maintaining its production capabilities and meeting the growing demand for its memory products.