Micron (NYSE: MU) warned today that the market outlook for calendar 2023 has “weakened,” forcing the company to take action. In response to market conditions, Micron is cutting DRAM and NAND wafer starts by about 20% compared to the fiscal Q4 of 2022.

The company believes that year-over-year (YoY) DRAM bit supply for calendar 2023 “will need to shrink and NAND bit supply growth will need to be significantly lower than previous estimates.” Overall, the DRAM YoY supply growth is now expected to be negative while NAND supply growth is seen in the single-digit percentage range.

Micron also noted it is developing plans to make further capex cuts.

“Micron is taking bold and aggressive steps to reduce bit supply growth to limit the size of our inventory. We will continue to monitor industry conditions and make further adjustments as needed,” said Micron President and CEO Sanjay Mehrotra.

“Despite the near-term cyclical challenges, we remain confident in the secular demand drivers for our markets, and in the long term, expect memory and storage revenue growth to outpace that of the rest of the semiconductor industry.”

As of 09:33 EST (14:33 GMT), Micron stock is down nearly 5%. Shares are down about 35% year-to-end.

By Senad Karaahmetovic