"Strong Demand for Data Centers"... US Micron Presents Rosy Outlook

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] U.S. semiconductor company Micron has presented a rosy outlook, stating that it will continue its rapid growth fueled by strong data center demand.

According to Bloomberg and other sources on the 29th (local time), Micron announced in its earnings report that its fiscal second-quarter revenue (December 3 last year to March 3 this year) reached $7.786 billion (approximately 9.5 trillion KRW), a 25% increase compared to the same period last year. This exceeded market expectations ($7.3 billion to $7.7 billion). Micron revealed that data center-related revenue grew by more than 60% year-over-year. Although specific figures for data center revenue were not disclosed, the computing and networking business unit, which includes data centers, posted $3.46 billion in revenue, a 31% increase compared to the same period last year.

CEO Sanjay Mehrotra said during the earnings conference call, "Last year, data centers surpassed the mobile market to become the largest market in memory and storage," adding, "The growth trend in data center demand will outpace the overall memory and storage market growth for the next decade."

Micron forecasts fiscal third-quarter (March 4 to early June) revenue of $8.5 billion to $8.9 billion, significantly exceeding market expectations of $8.13 billion. CEO Mehrotra explained that this growth will be driven by data center demand, 5G smartphone adoption, and strong demand in automotive and industrial markets, with DRAM demand expected to increase by the mid-to-high teens percentage and NAND flash demand by about 30% this year.

Micron is trailing behind domestic semiconductor companies such as Samsung Electronics and SK Hynix in the DRAM and NAND markets. According to market research firm TrendForce, Micron's market share was 22.9% in the DRAM market (third quarter last year) and 10.2% in the NAND market (fourth quarter last year).

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