Micron Technology (stock code: MU) encounters Taiwan earthquake, short-term impact on DRAM supply, long-term supply capability remains stable.

Taiwan earthquake affects DRAM supply

Micron Technology (MU) was affected to some extent by the Taiwan earthquake on April 3rd, with its supply of Dynamic Random Access Memory (DRAM) for the quarter possibly decreasing by up to a single-digit percentage. Although the company's production has not fully recovered at present, it emphasizes that its long-term DRAM supply capability will not be significantly affected.

Widespread application of DRAM

As a critical component for data centers, personal computers, smartphones, and other computing devices, DRAM has extensive applications in various fields. Taiwan plays an important role in the global chip supply chain, and the earthquake may potentially disrupt the supply chain, drawing market attention.

Investors' reaction

Driven by the surge in demand from the artificial intelligence industry, investors have pushed up the stock price of Micron Technology. The company announced in February that it had begun mass production of High Bandwidth Memory (HBM) chips for Nvidia H200 display processing units.

Market demand for HBM chips

These chips are mainly used for developing artificial intelligence applications. According to CEO Sanjay Mehrotra's statement in March, HBM chip sales for 2024 have been sold out, and most of the supply for 2025 has also been booked. It is not yet clear whether this earthquake will affect the supply of HBM chips.