Micron Technology (MU) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Financial outlook and industry dynamics

• Financial outlook has strengthened, with record free cash flow expected in fiscal Q3 and a robust balance sheet recognized by all three credit rating agencies this year.

• Demand for memory products, especially HBM, DRAM, and NAND, continues to outpace supply due to structural factors, with tightness expected well beyond 2026.

• Pricing has been a key driver of revenue growth, with memory becoming increasingly strategic as AI workloads shift from human to agentic and machine-to-machine interactions.

• Technology transitions in DRAM and NAND are yielding less productivity, requiring more greenfield wafer capacity and longer ramp times.

• Key customers are only able to secure 50% to two-thirds of their bit demand requirements, with no expectation for supply to catch up to demand in the foreseeable future.

Capacity expansion and technology roadmap

• Multiple new fabs are under development: Taiwan's Tongluo fab and a twin fab, both targeting production in the second half of 2027, and new Boise fabs with Idaho 1 pulled in to mid-2027 and Idaho 2 expected late 2028.

• Singapore is progressing on a high-bandwidth memory facility and a new NAND fab, both supporting future supply needs.

• Industry-leading technology transitions are underway, with 1-gamma DRAM and Gen 9 NAND expected to represent the majority of bit mix by mid-2024.

• EUV lithography is being deployed for the first time at the 1-gamma node, with a multi-year supply agreement with ASML to support future generations.

Operational efficiency and product portfolio

• Focus remains on yield and productivity improvements, but the complexity of the product portfolio makes like-for-like cost per bit declines harder to quantify.

• HBM, LPDRAM, and high-capacity DDR present different cost and manufacturing challenges, while NAND spans from QLC for clients to TLC for data centers.

• The portfolio is shifting toward higher-value solutions, with cost discipline remaining critical.