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Home » Market Update » Micron warns about DRAM shortages, industry face price increase

Micron Technology signaled more pain ahead for the global electronics sector, warning that a shortage of memory chips would last through the end of the year, leading to large price hikes, reports Electronic Design

Micron said that its quarterly sales are on pace to improve more than 30% year over year to around $7.1 billion in the latest quarter. Over the long term, it is trying to take advantage of smartphones, cars, and other electronics that are integrating more memory than they used to to run artificial intelligence or connect to 5G.

Electronic Design says that as demand for chips rebounds and supply tightens, the electronics industry is experiencing a massive “undersupply” of DRAM memory chips, causing average prices to spike. Micron said tight supplies coupled with strong demand would cause the semiconductor industry to fall short on filling orders for DRAM through the end of 2021 and possibly longer.

More than 70% of Micron’s business in the second quarter came from DRAM memory. Sales in the segment soared 44% year over year to around $4.4 billion.

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