Micron: Taiwan’s drought is over, but more problems follow one after another
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Production of chips and display panels in Taiwan Affected by drought this spring, That’s why chip manufacturers such as Micron, TSMC, UMC even Use trucks to load water to prevent their fabs from shutting downBut Micron said that the drought in Taiwan has ended, and the risk of chip production is now reduced. At the same time, the outbreak of SARS CoV-2 in Asia is now a new problem that Micron has to face.
Sanjay Mehrotra, President and CEO of Micron, said: “We have successfully mitigated the impact of the drought in Taiwan, and our output has not decreased.” Say On earnings conference calls with analysts and investors. “Taiwan’s rainy season has already begun, bringing enough water to support our manufacturing needs.
The drought in Taiwan was an important factor this spring, but because they took emergency measures, it seems that it did not really affect Micron and other semiconductor manufacturers in Taiwan. However, the increase in COVID-19 cases in India, Malaysia, and Taiwan is a new risk because if the governments of these countries decide to implement a lockdown, it will greatly affect the supply chain and business.
Micron produces DRAM chips in Taiwan and 3D NAND chips in Singapore. It has testing, packaging and assembly operations in Malaysia and R&D facilities in India. In fact, the company has had to reduce the output of its Malaysia plan to protect workers.
“Although the drought in Taiwan has passed, the increase in COVID-19 cases in Malaysia, India, and Taiwan poses a risk to our manufacturing operations and R&D activities in these regions…” Mehrotra said. “In order to protect our Micron team members at the back-end facility in Muar, Malaysia, we temporarily reduced the on-site labor force at the beginning of the fourth quarter, which lowered the production level. Since then, we have begun to bring team members back to the site… …While Muar returns to full production levels, we will use our global supply chain… to fulfill our commitments to customers and minimize any interference with delivery schedules.”
Although the situation of COVID-19 cases seems to be a short-term problem, the general high demand for chips and insufficient supply will affect the availability of 3D NAND and DRAM in the coming quarters. The person in charge of Micron said that the industry can hardly meet the demand for chips in the next few quarters.
Mehrotra said: “As the global economy rebounds, we expect DRAM and NAND supply to remain tight in FY22.” “The strong demand for memory and storage in data centers, smart edges, and user equipment puts Micron in the best position ever. , You can take full advantage of these exciting opportunities.”
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