US memory chip maker Micron signals recovery in 2020, says it received licenses to supply products to Huawei
- Shares of Micron rose nearly 4 per cent in extended trading, after its quarterly earnings beat Wall Street estimates
- The company said it had received all requested licenses to supply some products to its largest customer, Huawei Technologies
Micron Technology said on Wednesday it expected a recovery in 2020 after a “cyclical bottom” in the second quarter, and that it had received all requested licenses to supply some products to its largest customer, Huawei Technologies.
Shares of Micron rose nearly 4 per cent in extended trading, after its quarterly earnings beat Wall Street estimates on an uptick in demand for memory chips after a tepid year.
Struggling to grow sales in a slowing memory market, Micron faced more uncertainty when Washington placed Huawei on a so-called entity list in May that effectively banned US firms from supplying to the Chinese company.
Wednesday’s announcement about Huawei licenses comes amid a tepid forecast for the second quarter, but chief executive Sanjay Mehrotra said he expected the business to recover in the third quarter of fiscal 2020.
“Recent trends in our business give us optimism that our fiscal second quarter will mark the bottom for our financial performance … with continued recovery in the second half of calendar 2020,” Mehrotra told analysts on a post-earnings call.
In June, Micron said it had determined that some of its products could be legally shipped to Huawei, while others remained barred. It did not, however, disclose if it had received a license when US officials began granting them in November.