Micron Technology, Inc.

Company Overview

Business Model: Micron Technology, Inc. is an industry leader in innovative memory and storage solutions, delivering a portfolio of high-performance DRAM, NAND, and NOR memory and storage products under its Micron® and Crucial® brands. The company's innovations fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications across data centers, intelligent edge devices, and client and mobile user experiences. Micron manufactures products at wholly-owned facilities and utilizes subcontractors, leveraging a global network of manufacturing centers of excellence to streamline processes, improve cycle times, and develop proprietary product and process technology to increase bit density and reduce manufacturing costs.

Market Position: Micron operates in the highly competitive semiconductor memory and storage markets, facing competition from companies such as Samsung Electronics Co., Ltd.; SK hynix Inc.; Kioxia Holdings Corporation; Sandisk Corporation; ChangXin Memory Technologies, Inc.; and Yangtze Memory Technologies Co., Ltd. The market is characterized by rapid technological change, volatile pricing, and significant government assistance to competitors. Micron's success is driven by continuous R&D investment, efficient manufacturing, and market acceptance of its diversified portfolio. The company benefits from strong demand for memory and storage solutions fueled by AI, cloud computing, and data-centric workloads across data center, mobile, client PC, automotive, and industrial segments. In May 2023, China’s Cyberspace Administration determined that critical information infrastructure operators in China may not purchase Micron products, impacting its ability to compete effectively in China and elsewhere.

Recent Strategic Developments:

• Business Reorganization: In the fourth quarter of 2025, Micron reorganized its business units into a market segment-focused structure to enhance customer engagement and address dynamic industry needs, particularly in high-performance memory and storage for AI growth.
• Advanced Technology Introduction: In 2025, Micron began shipping the industry’s first 1γ (1-gamma) DRAM production node, incorporating EUV lithography for improved power efficiency, performance, and bit density. The majority of 2025 DRAM bit production was on the 1ß (1-beta) node. For NAND, volume production of Micron G9 NAND began in 2024, with G8 and G9 nodes representing the majority of 2025 NAND bit production.
• AI-Driven Product Innovation:
  • HBM: Began volume production of 8-high 24GB HBM3E in 2024, with HBM3E 12-high representing the majority of HBM shipments in Q4 2025. Delivered samples of HBM4 36GB 12-high in 2025, with HBM4 volume production scheduled for calendar 2026.
  • DDR5/LPDDR5: Qualified and began shipping 128GB DDR5 server modules (1ß node) in 2024. Began volume production of LPDDR5 in SOCAMM form factor for server markets in 2025. Began shipping qualification samples of 1γ node LPDDR5X memory for flagship smartphones in 2025 and announced production readiness of automotive LPDDR5X DRAM.
  • SSDs: Qualified and began shipping 9550 series SSDs and 6550 ION SSDs for data centers in 2025, utilizing Micron’s G8 NAND and vertically integrated engineering. Introduced first G9-based data center products, including PCIe Gen6 SSDs. Began shipping Micron G9 QLC-based NAND in client SSDs with Adaptive Write Technology for AI-driven applications.
• Global Manufacturing Expansion (CHIPS Act & International):
  • U.S.: Announced plans to invest in leading-edge memory manufacturing sites in Idaho and New York, supported by the U.S. CHIPS and Science Act of 2022. Broke ground on a leading-edge memory manufacturing fab in Boise, Idaho, in September 2022, with construction starting October 2023 and first DRAM wafer output projected for H2 calendar 2027. Announced plans for a second leading-edge memory manufacturing fab in Idaho in June 2025. Plans for Clay, New York, include up to four fabs over 20+ years, with production ramping after the second Idaho fab. Entered into direct funding agreements with the U.S. Department of Commerce for up to $6.4 billion in CHIPS Act grants for U.S. manufacturing expansion and modernization projects, including a fab in Manassas, Virginia. Also plans to bring advanced HBM packaging capabilities to the U.S.
  • International: Construction is progressing for an assembly and test facility in Gujarat, India. Modernizing the Hiroshima, Japan, manufacturing facility for DRAM production using EUV lithography. Broke ground on an HBM advanced packaging facility in Singapore, with capacity expansion beginning calendar 2027. Modernizing production capacity for DRAM and HBM products in Taiwan.

Geographic Footprint: Micron conducts substantial operations in Taiwan, Singapore, Japan, Malaysia, China, India, and the United States, with manufacturing facilities in all these locations. R&D centers are globally dispersed, including in Boise, Idaho; San Jose, California; India; Japan; Taiwan; Singapore; China; Italy; Mexico; Germany; and Malaysia. In 2025, approximately one-third of total revenue was from customers headquartered outside the United States, while approximately 80% of products were shipped to customer locations outside the United States.

• Revenue by Customer Headquarters (2025): U.S. (35.2%), Taiwan (15.2%), Mainland China (excluding Hong Kong) (7.1%), Other Asia Pacific (5.1%), Hong Kong (3.0%), Japan (2.4%), Europe (1.7%), Other (1.0%).
• Long-Lived Assets by Geographic Area (2025): Taiwan ($18.97 billion), Singapore ($10.67 billion), U.S. ($8.45 billion), Japan ($7.04 billion), Malaysia ($1.12 billion), China ($0.54 billion), India ($0.45 billion), Other ($0.09 billion).

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 39.8%
• Operating Margin: 26.1%
• Net Margin: 22.8%

Investment in Growth:

• R&D Expenditure: $3.80 billion (10.2% of revenue)
• Capital Expenditures: $15.86 billion
• Strategic Investments: Micron is making significant capital investments in manufacturing technology, facilities, and R&D globally. Key initiatives include the construction of leading-edge memory manufacturing fabs in Boise, Idaho, and Clay, New York, with support from the U.S. CHIPS Act, totaling up to $6.4 billion in grants. Further investments include modernizing a fab in Manassas, Virginia, bringing advanced HBM packaging capabilities to the U.S., constructing an assembly and test facility in Gujarat, India, modernizing the Hiroshima, Japan, facility for EUV lithography, and modernizing DRAM and HBM production in Taiwan.

Business Segment Analysis

Cloud Memory Business Unit (“CMBU”)

Financial Performance:

• Revenue: $13.52 billion (+257% YoY)
• Operating Margin: 45%
• Key Growth Drivers: Significant increases in DRAM bit shipments and average selling prices, primarily driven by accelerating AI demand in cloud server markets for HBM, high-capacity DIMMs, and low-power server DRAM. The segment benefited from a strategic shift of DRAM supply to meet strong demand in high-value data center markets.

Product Portfolio:

• Focuses on memory solutions for large hyperscale cloud customers and HBM for all data center customers.
• Product offerings include HBM, DDR, LPDDR, and GDDR.
• Key products include 8-high 24GB HBM3E (volume production in 2024), HBM3E 12-high (majority of HBM shipments in Q4 2025), and samples of HBM4 36GB 12-high for next-generation AI platforms.
• Also includes 128GB DDR5 server modules (1ß node) and LPDDR5 in SOCAMM form factor for server markets.

Market Dynamics:

• Growth is driven by the shift of infrastructure and workloads to the cloud, with cloud-native workloads and AI-enabled intelligent edge devices increasing demand.
• AI and data-centric workloads in cloud servers require significantly increasing quantities of DRAM, including HBM, and NAND.
• DDR5 addresses the decreasing memory bandwidth per CPU core in modern servers, providing higher bandwidth for improved performance and scaling.

Core Data Center Business Unit (“CDBU”)

Financial Performance:

• Revenue: $7.23 billion (+45% YoY)
• Operating Margin: 30%
• Key Growth Drivers: Increases in average selling prices for both data center DRAM and NAND, coupled with higher NAND bit shipments due to increased demand for data center SSDs.

Product Portfolio:

• Focuses on memory solutions for mid-tier cloud, enterprise, and OEM data center customers, and storage solutions for all data center customers, including data center SSDs and NAND components.
• Memory solutions include DDR5 and DDR4.
• Storage solutions include the 9550 series SSD and 6550 ION SSD (both qualified and shipping in 2025, utilizing Micron’s G8 NAND and vertically integrated engineering), and G9-based data center products, including PCIe Gen6 SSDs.
• Also sells component NAND (QLC and TLC).

Market Dynamics:

• Demand is fueled by the rapid proliferation of AI, cloud computing, and big data, requiring high-performance and high-capacity storage in data centers.

Mobile and Client Business Unit (“MCBU”)

Financial Performance:

• Revenue: $11.86 billion (+2% YoY)
• Operating Margin: 17%
• Key Growth Drivers: Increases in DRAM and NAND revenue. Higher DRAM average selling prices were partially offset by decreased bit shipments as supply was prioritized for higher-value segments. Increased NAND bit shipments were partially offset by decreased NAND average selling prices.

Product Portfolio:

• Provides memory and storage solutions for mobile and client segments, including Crucial-branded SSDs and DRAM for consumers, and component DRAM and NAND (TLC and QLC).
• Mobile offerings include discrete NAND, DRAM, and managed NAND products, such as MCPs and e.MMC/UFS solutions combined with LPDDR, featuring firmware for next-generation smartphones and AI applications.
• Client products support commercial and consumer PC unit growth.
• Client and Consumer SSDs include the 2500, 2550, 2650, and 3500 series SSDs, and Crucial-branded BX500 SATA SSDs and P3 Plus PCIe SSDs. Micron G9 QLC-based NAND client SSDs feature Adaptive Write Technology for AI-driven applications.

Market Dynamics:

• Mobile demand is driven by the proliferation of smartphones, tablets, and other mobile devices, with AI adoption significantly increasing mobile DRAM content. On-device AI capabilities are driving increased memory and storage capacity needs.
• Client PC market growth is supported by next-generation PCs with high-performance neural processing chipsets and AI capabilities, requiring significantly more DRAM and higher-capacity SSDs.

Automotive and Embedded Business Unit (“AEBU”)

Financial Performance:

• Revenue: $4.75 billion (+3% YoY)
• Operating Margin: 12%
• Key Growth Drivers: Manufacturing cost reductions and higher bit shipments, partially offset by declines in average selling prices due to pricing pressure on certain legacy products.

Product Portfolio:

• Focuses on memory and storage solutions for automotive, industrial, and consumer segments within the intelligent edge.
• Product offerings include discrete and module DRAM, discrete NAND, managed NAND, SSDs, and NOR.
• Announced production readiness of its first automotive LPDDR5X DRAM product in 2025 for AI-driven vehicle applications.
• The 4150 SSD became the first enterprise SSD product to be automotive-qualified and is sampling at target customers.
• Other products include LPDDR5, LPDDR4, managed NAND, DDR4, DDR3, and GDDR6.

Market Dynamics:

• Automotive demand is driven by autonomous driving, advanced driver-assistance systems, in-vehicle infotainment, and AI technologies, increasing requirements for high-performing, high-reliability memory and storage.
• Industrial demand stems from the growing adoption of IoT devices, automation, machine-to-machine communication, and smart infrastructure.
• Consumer embedded solutions enable intelligent edge devices in products like set-top boxes, digital home assistants, and AR/VR headsets to store, connect, and transform information in the IoT.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Micron repurchased 3.2 million shares for $300 million in 2024. No shares were repurchased in 2025. As of August 28, 2025, $2.81 billion remained available under the $10 billion share repurchase authorization, which has no expiration date. Share repurchases are subject to market conditions and restrictions under CHIPS Act direct funding agreements.
• Dividend Payments: Micron declared and paid quarterly dividends of $0.115 per share in 2025, totaling $522 million.
• Dividend Yield: 0.39% (based on $0.46 annual dividend and $118.61 share price as of September 26, 2025).
• Future Capital Return Commitments: Micron expects to continue quarterly dividends and aims to grow payments over time, subject to Board approval and various financial and business factors. Share repurchases are permitted under the existing authorization, with specific restrictions during the initial years of CHIPS Act funding agreements.

Balance Sheet Position:

• Cash and Equivalents: $11.94 billion (including cash, cash equivalents, short-term, and long-term marketable investments) as of August 28, 2025.
• Total Debt: $14.58 billion (carrying value) as of August 28, 2025.
• Net Cash Position: $(2.64) billion (net debt position).
• Debt Maturity Profile (Principal amounts, in millions):
  • 2028: $700
  • 2029: $2,843
  • 2030: $796
  • 2031: $1,000
  • 2032: $1,500
  • 2033: $1,650
  • 2035: $2,250
  • 2041: $500
  • 2051: $500
  • Finance Lease Obligations: $3,044
• Key Interest Rates: Stated rates for senior unsecured notes range from 2.703% to 6.750%. The 2029 Term Loan A bears interest at adjusted term SOFR plus an applicable margin (0.875% to 1.50%). Finance lease obligations have a weighted-average discount rate of 5.19%.

Cash Flow Generation:

• Operating Cash Flow: $17.53 billion in 2025.
• Free Cash Flow: $1.67 billion in 2025 (Operating Cash Flow less Capital Expenditures).

Operational Excellence

Production & Service Model: Micron manufactures its products in wholly-owned facilities and utilizes subcontractors, operating a global network of manufacturing centers of excellence. Products are manufactured on 300mm wafers, with facilities generally operating 24/7. The company leverages common manufacturing processes across DRAM, NAND, and NOR products. Manufacturing costs are primarily determined by process line-width, 3D non-volatile layers, NAND cell levels, process complexity, and manufacturing yield. Micron continuously enhances production processes, increases bits per wafer, transitions to higher density products, and employs advanced testing and assembly processes, including proprietary AMBYX™ intelligent test and burn-in systems.

Supply Chain Architecture: Key Suppliers & Partners: Micron's operations depend on the availability of high-standard materials and third-party components and services. While generally having multiple sources, a limited number of suppliers provide certain critical materials (e.g., chemicals, silicon wafers, gases, photoresists, semiconductors, substrates, lead frames, printed circuit boards, targets, reticle glass blanks) and key equipment (e.g., photolithography tools), with some being single or sole sources. The company also relies on third-party manufacturers for controllers and analog integrated circuits, outsourced semiconductor foundries, assembly and test providers, contract manufacturers, logistics carriers, and utility providers. China is a predominant producer of certain rare earth elements, minerals, and metals essential for manufacturing.

Facility Network:

• Manufacturing: Wholly-owned facilities are located in Taiwan, Singapore, Japan, the United States, Malaysia, China, and India.
• Research & Development: R&D centers are located in Boise, Idaho; San Jose, California; India; Japan; Taiwan; Singapore; China; Italy; Mexico; Germany; Malaysia; and other sites in the United States.
• Distribution: Micron maintains inventory at locations close to key customers to facilitate rapid product delivery.
• Expansion Projects: New leading-edge memory manufacturing fabs are planned in Boise, Idaho (first DRAM wafer output projected H2 calendar 2027, second fab planned) and Clay, New York (up to four fabs over 20+ years). A fab in Manassas, Virginia, is being expanded and modernized. An assembly and test facility is under construction in Gujarat, India. The Hiroshima, Japan, facility is being modernized for DRAM production using EUV lithography. An HBM advanced packaging facility is being built in Singapore (capacity expansion beginning calendar 2027), and production capacity for DRAM and HBM products is being modernized in Taiwan.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels: Micron primarily markets its semiconductor memory and storage products through its direct sales force, supported by sales or representative offices worldwide. Products are also offered through distributors, retailers, and independent sales representatives. Crucial-branded products are sold via a web-based customer-direct sales channel and through channel and distribution partners.

Customer Portfolio: Enterprise Customers: Micron builds collaborative relationships with customers, engaging early in the product lifecycle to design features and performance characteristics. Long-term agreements are common, with pricing and quantity periodically negotiated based on market conditions and demand. Customer Concentration: In 2025, one customer accounted for 17% of total revenue (primarily in the CMBU segment). In 2024, one customer accounted for 10% of total revenue (primarily in the MCBU, AEBU, and CMBU segments). Approximately one-half of total revenue in each of the last three years was from the top ten customers.

Geographic Revenue Distribution:

• U.S.: 35.2% of total revenue
• Taiwan: 15.2% of total revenue
• Mainland China (excluding Hong Kong): 7.1% of total revenue
• Other Asia Pacific: 5.1% of total revenue
• Hong Kong: 3.0% of total revenue
• Japan: 2.4% of total revenue
• Europe: 1.7% of total revenue
• Other: 1.0% of total revenue

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The semiconductor memory and storage markets are highly competitive and volatile, characterized by rapid technological change, shortened product life cycles, and declining average selling prices. AI-driven demand is accelerating and currently outpacing industry supply, leading to substantial improvements in DRAM pricing, volumes, and margins in 2025. NAND revenue also increased in 2025 due to demand growth. Industry-wide supply discipline in 2024 improved market conditions from the downturn in 2023. Governments provide significant assistance to competitors, and increasing investment in the semiconductor industry, particularly by Chinese government-affiliated entities like ChangXin Memory Technologies, Inc. and Yangtze Memory Technologies Co., Ltd., poses a threat of oversupply.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Samsung Electronics Co., Ltd.
• SK hynix Inc.
• Kioxia Holdings Corporation
• Sandisk Corporation
• ChangXin Memory Technologies, Inc. ("CXMT")
• Yangtze Memory Technologies Co., Ltd. ("YMTC")

Emerging Competitive Threats: New entrants and significant investments in the semiconductor industry, particularly by Chinese government-affiliated entities, could lead to increased competition and oversupply. Competitors are also developing new memory and storage technologies that may offer performance or cost advantages.

Competitive Response Strategy: Micron's strategy involves continuous development and implementation of new products and technologies, decreasing manufacturing costs, advancing process technology to increase bit output and yields, and expanding wafer supply through new and existing fabrication facilities. The company invests heavily in R&D for new process technologies like EUV lithography, differentiates products to meet specific customer demands, and strategically pivots to higher-growth segments like HBM and data center markets. Micron also prudently manages its NAND business to align supply growth and technology node cadence with demand projections.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Volatility in Average Selling Prices: Significant historical volatility in DRAM (low 40% increase to high 40% decrease annually) and NAND (low 30% increase to low 50% decrease annually) average selling prices.
• Industry Oversupply: Threat of increasing competition and DRAM/NAND oversupply due to significant industry investment, including by Chinese government entities.
• Rapid Technological Change: Shortened product life cycles and potential declines in average selling prices.
• AI Demand Forecasting: Difficulty in accurately forecasting rapidly evolving AI demand, potentially leading to costs for anticipated demand that does not materialize or oversupply if HBM demand weakens and capacity shifts to conventional DRAM.
• Customer and Market Concentration: Over half of total revenue from top ten customers and approximately one-half from the data center end market, posing risks if demand from these sources decreases significantly.
• Regulatory Restrictions: The May 2023 decision by China’s Cyberspace Administration restricting critical information infrastructure operators in China from purchasing Micron products.

Technology Disruption:

• Technological Barriers: Challenges in achieving acceptable yields and quality for HBM, limitations on stacking 3D memory layers, increasing bits per cell, meeting higher density requirements, and improving power consumption/reliability.
• Competitor Innovation: Risk of competitors developing superior memory and storage technologies that could render existing technologies obsolete.
• System-Level Product Complexity: Higher per-unit manufacturing costs, longer cycle times, and increased reliance on customer-specific designs for system-level products (SSDs, managed NAND, HBM).

Customer Concentration:

• Over half of total revenue derived from the top ten customers in each of the last three years.
• One customer accounted for 17% of total revenue in 2025.
• One customer accounted for 10% of total revenue in 2024.

Operational & Execution Risks

Supply Chain Vulnerabilities:

• Supplier Dependency: Reliance on a limited number of suppliers, and in some cases single or sole sources, for critical materials (e.g., chemicals, silicon wafers, photoresists, rare earth elements) and key manufacturing equipment (e.g., photolithography tools).
• Geopolitical Impact: Trade disputes, geopolitical tensions, and public health issues can limit access to materials, particularly rare earth elements predominantly sourced from China.
• Third-Party Reliance: Dependence on third-party manufacturers for components (controllers, analog ICs) and outsourced services (foundries, assembly/test, logistics, utilities).
• Utility Dependence: Operations are dependent on a reliable and uninterrupted supply of electrical power, gas, and water.

Geographic Concentration:

• International Operations Risks: Exposure to political and economic instability, government actions, civil unrest, and public health issues in key operational regions (Taiwan, Singapore, Japan, Malaysia, China, India).
• Taiwan Production: A majority of DRAM production output in 2025 was from fabrication facilities in Taiwan, making operations vulnerable to regional disruptions.
• Construction Challenges: Expansion projects in the U.S. and other regions face challenges in securing labor, materials, and specialized equipment due to increasing demand and competition.

Capacity Constraints:

• Expansion Risks: Inability to meet capital expenditure requirements, secure necessary funding (including government incentives), obtain environmental permits, complete construction on schedule/budget, attract/retain talent, or ramp production cost-effectively.
• Underutilization: Risk of underutilization of production assets due to weak demand, industry oversupply, or inventory surpluses, leading to higher per-gigabit manufacturing costs.

Financial & Regulatory Risks

Market & Financial Risks:

• Economic Downturns: Adverse conditions in regional or worldwide economies (inflation, interest rate increases, trade disputes) can reduce demand for products and impact financial performance.
• Financing Access: Deterioration of credit markets could limit access to external financing for operations and capital expenditures.
• Debt Obligations: Significant debt levels require substantial cash flow for principal and interest payments, potentially limiting funds for other business activities.
• Foreign Exchange: Exposure to volatility in foreign currency exchange rates (e.g., Canadian dollar, Chinese yuan, euro, Indian rupee, Japanese yen, Malaysian ringgit, New Taiwan dollar, Singapore dollar) can significantly impact manufacturing costs and financial results.
• Counterparty Default: Risks associated with financial institutions and customers defaulting on their obligations.

Regulatory & Compliance Risks:

• Trade Regulations: Export restrictions, tariffs, and trade protection measures (e.g., U.S. government restrictions, CAC decision, Section 232 investigation) can limit sales, increase costs, and restrict operations.
• Tax Law Changes: Changes to income tax laws (e.g., U.S. OBBBA, Pillar Two in Singapore) or their interpretation could significantly increase the effective tax rate.
• Environmental & Safety Regulations: Evolving environmental, health, safety, and product laws (e.g., PFAS, climate change disclosure rules) may necessitate operational changes and increase compliance costs.
• Cybersecurity & Data Privacy: New and evolving laws and regulations related to cybersecurity, data privacy, and AI impose compliance requirements and potential liabilities.

Geopolitical & External Risks

Geographic Dependencies:

• Taiwan Operations: Political, economic, or other actions affecting Taiwan could have a material adverse effect due to the concentration of DRAM production there.
• China's Material Dominance: China's predominant role in supplying rare earth elements, minerals, and metals creates dependency and potential supply constraints due to trade restrictions.

Trade Relations:

• International Trade Disputes: Ongoing international trade disputes, geopolitical tensions, and military conflicts can lead to new export restrictions, trade barriers, and tariffs.
• U.S. Export Controls: U.S. government restrictions on selling products and software to certain customers, and new export controls related to AI applications, can limit market access.

Sanctions & Export Controls:

• Compliance Requirements: Compliance with U.S. and international export control, customs, and sanctions regulations, including licensing requirements and restrictions on sales to certain countries or entities.
• Tariff Impacts: Increased tariffs can raise product costs for customers, impacting demand.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas: Micron's R&D efforts are primarily focused on developing memory and storage solutions, including industry-leading DRAM and NAND technology, to continuously improve product performance and cost structure. This includes developing new memory structures, materials, and packages for next-generation products, and enabling advanced computing, storage, and mobile memory architectures. Innovation Pipeline:

• DRAM: Began shipping the 1γ production node in 2025, which is its first DRAM node incorporating EUV lithography. The company is advancing its HBM4 technology for volume production in calendar 2026 and delivered samples of HBM4 36GB 12-high in 2025. Qualification samples of 1γ node LPDDR5X memory for flagship smartphones were shipped in 2025.
• NAND: Began volume production on the Micron G9 NAND node in 2024.
• System Solutions: Product design and development efforts encompass HBM, DDR5, LPDDR5, high-capacity MRDIMMs, Compute Express Link (CXL) based products, advanced graphics DRAM, TLC and QLC NAND technologies, and storage solutions (including firmware and controllers) in SSDs and managed NAND.

Intellectual Property Portfolio:

• Patent Strategy: As of August 28, 2025, Micron had been granted over 60,000 patents, owning approximately 15,000 active U.S. patents and 7,500 active foreign patents, with thousands of applications pending. Patents have terms expiring through 2044.
• Licensing Programs: Micron sells and licenses its technology to other parties, pursuing opportunities to monetize its intellectual property through partnering and other arrangements.
• IP Litigation: The company is routinely involved in patent infringement litigation, with ongoing cases from entities such as Netlist, Inc., Yangtze Memory Technologies Company, Ltd., Palisade Technologies, LLP, and Advanced Memory Technologies, LLC, pertaining to substantially all of its memory and storage products.

Leadership & Governance

Executive Leadership Team

Human Capital Strategy

Workforce Composition:

• Total Employees: Approximately 53,000 employees as of August 28, 2025.
• Geographic Distribution: Employees are primarily located in Asia, North America, and Europe.
• Skill Mix: Micron relies on a highly educated and experienced global workforce, with a strategic focus on expanding the pipeline of skilled STEM talent.

Talent Management: Acquisition & Retention:

• Hiring Strategy: Micron partners with communities, educational institutions, governments, and associations to foster STEM talent and recruit based on merit.
• Employee Value Proposition: The company offers a comprehensive total rewards strategy, including base salary, bonuses, equity awards, a discounted stock purchase plan, and a benefits package, with regular global pay reviews to ensure fairness and market competitiveness. Diversity & Development:
• Development Programs: Micron is committed to continuous learning, offering on-the-job training, continuing education, a mentoring program, internal certifications, and AI tools training. Leadership development programs are in place to accelerate careers.
• Culture & Engagement: The company fosters a culture of innovation and respect, with mandatory training on respectful workplaces and psychological safety for leaders. The "Micron Voice" program gathers feedback on engagement, culture, leadership, well-being, and inclusion. Employee Resource Group (ERG) membership exceeds half of the workforce, promoting connection and community engagement.

Environmental & Social Impact

Environmental Commitments: Climate Strategy: Micron proactively manages environmental compliance and sustainability, focusing on greenhouse gas emissions, climate-related risks, carbon-free electricity, water stewardship, and waste management. The company has entered into virtual power purchase agreements to obtain renewable energy credits. Its wafer fabrication facilities conform to ISO 14001:2015 environmental management systems standards.

Supply Chain Sustainability: Micron is a member of the Responsible Business Alliance (RBA) and adheres to its Code of Conduct, promoting responsible working conditions, ethical business practices, and environmental stewardship throughout its global supply chain. The company and its customers have responsible sourcing programs that require meeting sustainability and governance criteria.

Social Impact Initiatives:

• Health, Safety, and Well-being: Proactive efforts are in place to prevent occupational illnesses and injuries, with health and safety committees at each site and a unified corporate safety culture. A comprehensive well-being program addresses physical, mental, social, career, and financial aspects, offering resources like free mental health support, fitness centers, financial education, and family support solutions.

Business Cyclicality & Seasonality

Demand Patterns: Micron's business is sensitive to regional and worldwide economic conditions, which affect demand for devices incorporating its products (e.g., PCs, smartphones, automobiles, servers). The industry experiences volatility in average selling prices. AI is a rapidly evolving demand driver, and fluctuations in AI-related investments or shifts in HBM demand could impact DRAM supply and pricing.

Planning & Forecasting: The company makes product specification decisions years in advance and faces challenges in accurately forecasting customer and distributor demand and inventory levels. Long lead-times for some components require orders up to a year in advance, increasing the risk of excess inventory or lost sales if forecasts deviate from actual demand.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations: Micron's manufacturing and sales are subject to complex and evolving federal, state, local, and foreign environmental, health, safety, and product laws and regulations, including increasing regulations on chemicals like PFAS. The company's facilities conform to ISO 14001:2015 environmental management systems standards. New sustainability laws, such as California’s climate change disclosure rules, and evolving cybersecurity, data privacy, and AI regulations impose additional compliance requirements.

Trade & Export Controls: International trade activities are subject to U.S. government agencies (BIS, OFAC) and other jurisdictions' export control, customs, and sanctions regulations. The CAC decision in China restricts sales to critical information infrastructure operators. Geopolitical tensions have led to new export controls, particularly for AI-related products, potentially restricting sales to certain markets (e.g., China) or access to equipment and raw materials. The U.S. Bureau of Industry and Security has initiated an investigation into semiconductor imports under Section 232, which could result in industry-wide tariffs and trade restrictions.

Legal Proceedings: Micron is involved in various legal proceedings, including:

• Patent Matters: Multiple patent infringement lawsuits from Netlist, Inc., Yangtze Memory Technologies Company, Ltd., Besang Inc., Palisade Technologies, LLP, and Advanced Memory Technologies, LLC, covering a broad range of DRAM, NAND, and other memory products. A jury verdict of $445 million was rendered against Micron in a Netlist, Inc. case, which Micron is appealing, and PTAB decisions finding the asserted patents unpatentable are also under appeal.
• Securities Class Action Matters: A putative class action complaint and related shareholder derivative complaints allege false or misleading statements regarding industry supply and demand dynamics and product demand.
• Other Matters: A complaint from Yangtze Memory Technologies Company, Ltd. alleges false advertising, product disparagement, and unfair competition.

Tax Strategy & Considerations

Tax Profile: Micron's effective tax rate was 11.6% in 2025, 36.4% in 2024, and (3.1)% in 2023, primarily influenced by changes in profitability. The company benefits from tax incentive arrangements in jurisdictions like Singapore, which reduced its tax provision by $1.05 billion (benefiting diluted EPS by $0.93) in 2025. Tax Reform Impact: The U.S. One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025, introduces broad changes to the U.S. tax code effective in 2026 and 2027. Singapore enacted legislation in November 2024 to implement Pillar Two Model Rules, effective in 2026. Micron expects its tax rate to be in the mid to high-teens percentage range starting in 2026 due to these reforms.

Insurance & Risk Transfer

Risk Management Framework: Micron manages exposure to interest rate risk through investments in shorter-term securities and floating-rate debt. Foreign currency exchange rate risk is managed through currency risk management programs utilizing rolling hedge strategies with currency forward contracts, generally maturing within three months, for monetary assets, liabilities, and forecasted cash flows. Commodity price risk for manufacturing supplies is also managed with derivative instruments. The company uses master netting arrangements to mitigate counterparty credit risk in derivative transactions. While construction projects are covered by insurance and contractual indemnities, Micron acknowledges that full recovery for all sustained losses through insurance is not guaranteed and may elect to self-insure for certain matters.