“PC unit sales [are] now expected to decline by nearly 10% year over year from the very strong unit sales in calendar 2021,” Mehrotra told analysts. “This compares to an industry and customer forecast of roughly flat calendar-2022 PC unit sales at the start of this calendar year.” PCs are big consumers of DRAMs, and they are using more memory per system, especially Macs with Apple Inc.’s new M1 processor.
In addition, Mehrotra said demand for smartphones is also falling, and Micron projected smartphone-unit volume to decline by mid-single-digits year over year in calendar 2022, well below industry expectations earlier in the year of mid-single-digit percentage growth.
Micron said that, in reaction, it will be cutting some of its capital spending on wafer fab equipment, the equipment that semiconductor companies use to make wafers in fabrication facilities, for fiscal 2023. “We now expect our fiscal 2023 wafer fab equipment capex to decline year-over-year,”
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