Micron flags its DRAM supplies hit by Taiwan earthquake

(Reuters) – The April 3 earthquake in Taiwan will damage a calendar quarter of dynamic random access memory (DRAM) supplies by up to a mid-single digit percentage, memory chip maker Micron Technology said on Thursday.

The company has four sites in Taiwan, which plays a large role in the global chip supply chain, and the earthquake raised fears of a potential disruption.

Micron said it had not yet reached full DRAM production after the quake, but added that there would be no impact on its ability to supply DRAM in the long term.

DRAM is widely used in data centers, personal computers, smartphones, and other computing devices.

Investors led a rally in Micron shares as demand skyrocketed for its chips from the booming artificial intelligence industry.

Micron said in February that it had begun mass production of high-bandwidth memory (HBM) chips for use in Nvidia's H200 graphics processing units used in artificial intelligence applications.

Micron's booth at the 6th CIIE in Shanghai in November. (KustPhoto/Norphoto via Getty Images) (Norphoto via Getty Images)

The company's HBM chips, which are used in developing artificial intelligence applications, are sold out for 2024 and the majority of 2025 supplies have already been earmarked, CEO Sanjay Mehrotra said in March.

Micron previously described HBM chips as a stacked DRAM technology. The company did not specify whether its HBM supplies would be affected by the earthquake.

(Reporting by Arshiya Bajwa in Bengaluru; Editing by Sriraj Kalluvila)

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