The semiconducter giant Micron Technology announced they are reducing chip production by about 20%.
The CEO said they need to reduce inventory as they deal with short term cyclical challenges.
These reductions will be made across all technology nodes where Micron has meaningful output.
Micron says they are working on additional capital expenses cuts. This includes cuts on plants, equipment and development.
Micron now expects its year-on-year bit supply growth for next year to be negative for one kind of chip and in the single-digit percentage range for another.
Spectrum News 1 asked Micron officials whether this will impact the $100 billion investment the company is making in Central New York regarding the chip fabrication site in Clay.
They said this downturn right now shouldn't affect the memory market and the plant will still be needed to meet long term demand.