Memory and storage products for cloud and networking markets boost revenue.
Reviewed by Akhilesh Ganti
Micron Technology Inc. (MU) develops and manufactures memory and storage products. The company provides the foundational support for AI and 5G capability across consumer devices, networks, and data centers to support sectors like healthcare and automotive. Micron is the fifth largest semiconductor company worldwide.
As one of the leading semiconductor companies, Micron faces major competition from Intel Corp. (INTC), Taiwan Semiconductor Manufacturing Company (TSM), Samsung Electronics Co. Ltd. (SSNLF), and other chip producers.
Key Takeaways
- Micron Technology is a semiconductor company that develops memory and storage solutions.
- Micron products are used in automobiles, consumer electronics, servers, and computers.
- Its Compute and Networking Business Unit generates the largest share of revenue.
Micron’s Industry
Micron operates through four different reportable segments: Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Storage Business Unit (SBU), and Embedded Business Unit (EBU).As a leader in semiconductor companies, Micron faces major competition from Intel Corp. (INTC), Taiwan Semiconductor Manufacturing Company (TSM), and Samsung Electronics Co. Ltd. (SSNLF).
- Compute and Networking Business Unit: Memory products and solutions sold to clients, cloud servers, enterprise, graphics, and networking markets.
- Mobile Business Unit: Memory and storage products for the smartphone and mobile device market.
- Embedded Business Unit: Memory, storage products, and solutions to support the automotive, industrial, and consumer sectors.
- Storage Business Unit: Solid State Drives (SSDs) and component solutions for enterprise and cloud, client, and consumer storage markets.
Micron’s Financials
Micron reported a total annual revenue of $15.5 billion for the FY ending Aug. 31, 2023, down from $30.7 billion in 2022. The company reported a net loss of $5.8 billion. Revenue declined due to a sharp drop in the memory and storage industry throughout 2023 due to weak demand in end markets, global and macroeconomic issues, and customers’ reduced inventory levels.
CNBU was the highest contributor to Micron’s revenue, however, it marked a decrease of 58% from 2022. All of Micron’s business units suffered a loss in revenue year over year overall due to declines in the selling prices for DRAM (Dynamic Random-Access Memory) and NAND storage technology or decreases in DRAM and NAND bit shipments.
Micron reports an additional miscellaneous category to cover other revenue sources. This “Other” unit accounts for a negligible amount of total revenue and is excluded from the pie chart below.
History and Leadership
In 1978, Micron Technology Inc. started as a small semiconductor design company in Boise, Idaho. By 1980, the company built its fabrication plant that introduced the world’s smallest 256K DRAM. As of 2024, Micron has locations in 17 countries, led by Sanjay Mehrotra, president and chief executive officer (CEO).
Recent Developments
In 2024, Micron received grants of $6.1 billion to support Micron’s plans to invest approximately $50 billion in U.S. domestic memory manufacturing through 2030 with production locations in Idaho and New York.
The company was the first to support critical memory for AI Data Centers. Micron validated and shipped 128GB DDR5 32Gb server DRAM to support Gen AI applications in May 2024. AI servers are configured with Micron products to deliver the capacity, bandwidth, and infrastructure needed for memory requirements.
How Does Micron Compete Globally With New Innovation?
To compete in the semiconductor market, Micron has team members in research and development in the U.S., India, Japan, Taiwan, China, Italy, Singapore, Germany, and Malaysia.
What Is a Semiconductor?
Semiconductors are comprised of silicon to conduct electricity. Also known as chips, semiconductors can be found in computers, smartphones, appliances, gaming hardware, and medical equipment.
How Many Employees Does Micron Have?
As of 2023, Micron employed 43,000 employees worldwide.
The Bottom Line
Micron Technology Inc. was founded in 1978 and has grown to the fifth largest semiconductor company in 2024. The company’s memory and storage products support cloud technology, mobile devices, the automotive industry, and the healthcare sector.
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