The market is tight, and Micron`s net profit in the Q3 fiscal quarter increased by 116%, and said that the shortage will continue until 2022, and the Lehi factory has been settled!

Micron announced its latest financial report. From March to May 2021, Micron`s revenue was US$7.422 billion, an increase of 36% year-on-year, and its net profit increased by 116% year-on-year. Driven by record MCP revenue, consumer SSD and cSSD revenue, NAND Flash revenue hit a record high.

DRAM/NAND Flash prices have all risen, and Micron`s net profit soars by 116%

According to the latest financial report, as of June 3, 2021, Micron`s operating income for the third quarter of fiscal 2021 was US$7.42 billion, a year-on-year increase of 19% and 36% year-on-year; according to GAAP standards, net income was US$1.74 billion, a year-on-year increase 116%, and diluted earnings per share was US$1.52; calculated according to non-GAAP standards, net income was US$2.17 billion, a year-on-year increase of 131%, and diluted earnings per share was US$1.88; operating cash flow was US$3.56 billion, a month-on-month increase of 17%, year-on-year An increase of 77%.

According to technology, DRAM revenue reached 5.448 billion US dollars, accounting for 73% of total revenue, an increase of 23% month-on-month, and an increase of 52% year-on-year; Bit shipments increased by a low single-digit percentage month-on-month; ASP unit prices rose by about 20% month-on-month.

NAND revenue reached US$1.812 billion, accounting for 24% of total revenue, an increase of 10% month-on-month and a year-on-year increase of 9%; Bit shipments increased by a percentage of low single digits from the previous month; ASP unit price increased by a percentage of high single digits from the previous month.

Micron said that the proportion of shipments of 1αnm DRAM and 176L NAND Flash has increased. Among them, QLC accounts for the majority of cSSD shipments and will bring DDR5 products in the second half of the year.

Divided by department:

· Revenue from the computer and network sector was US$3.304 billion, a quarter-on-quarter increase of 25% and a year-on-year increase of 49%

· Revenue of the Mobile segment was US$1.99 billion, an increase of 10% month-on-month and 31% year-on-year;

· The storage business unit's revenue was US$1.009 billion, an increase of 19% month-on-month and approximately the same year-on-year;

· Embedded business unit revenue was 1.105 billion US dollars, an increase of 18% month-on-month and a year-on-year increase of 64%.

Micron: DRAM and NAND supply will continue to be tight until 2022

Micron has seen strong growth in all end markets. Although Malaysia`s blockade measures have been postponed indefinitely due to the epidemic, and the shortage of cores restricts the shipment of terminal equipment, it has limited orders for some storage devices, but Micron said that as some of these problems are alleviated, demand should improve further. Looking forward to the next quarter, Micron predicts that the revenue for the next fiscal quarter will be US$8 billion to US$8.4 billion, an increase of 8% to 13% month-on-month; gross profit margin will be between 46% and 48%.

Although the prices of DRAM and NAND Flash are rising, and demand is rising, some of the costs are also rising when actions are taken to mitigate the risk of future supply disruptions and shift manufacturing to more expensive products. Micron said that by 2022, the supply of memory chips will continue to remain "tight."

Abandoning 3D Xpoint, Micron sells Lehi factory to Texas Instruments

In addition, Micron also announced the sales of related Lehi plants.

Micron announced the sale of the Lehi plant to Texas Instruments. This transaction Micron will receive 1.5 billion US dollars in revenue, of which 900 million will come from cash and 600 million will come from equipment and assets. Micron has already sold some of these assets and will keep the remaining assets redeployed to other manufacturing bases or sold to other buyers. This transaction is expected to be completed later this year.

On March 16 this year, Micron announced the termination of the development of 3D Xpoint and the sale of its Lehi plant in Utah.

3D Xpoint was once regarded as a storage solution for data centers, but 3D Xpoint faced a major challenge that had to rewrite most of the software to be applied, resulting in low demand and difficulty in scaling up, making Micron finally abandon 3D Xpoint and decided to research and develop The focus of investment is on the introduction of CXL (Compute Express Link (CXL), a storage solution with high-performance CPU industry standard interfaces. CXL can provide high-performance connections between computing, memory, and storage to meet the needs of artificial intelligence and data analysis. Increased customer workload requirements.