Micron expects to reduce the supply of memory chips in 2023.

CTOnews.com, Nov. 16 (Xinhua) Micron Technology said on Wednesday that it will reduce the supply of memory chips and make more cuts in capital expenditure plans as the semiconductor company tries to clean up excess inventory caused by weak demand.

The company's shares fell nearly 4 per cent in morning trading.

Micron is the first major chipmaker since earlier this year to warn of falling demand for personal computers and smartphones because of high inflation.

"in order to significantly improve total inventory... the supply of DRAM bit will need to be reduced, and supply growth of NAND bit will be much lower than previously forecast," the company said.

CTOnews.com has learned that Micron is reducing the operating rate of DRAM and NAND wafers-or the initial process in semiconductor production-by about 20 per cent compared with the fourth quarter ended September 1.

For 2023, Micron expects its DRAM bit supply to show negative year-on-year growth and NAND bit supply to show single-digit percentage year-on-year growth.