AmCham Global Executive Insights: Taiwan's Current and Future Role in the Semiconductor Memory...

© 2015 Micron Technology, Inc. All rights reserved. Information, products, and/or specifications are subject to

change without notice. All information is provided on an “AS IS” basis without warranties of any kind.

Statements regarding products, including regarding their features, availability, functionality, or compatibility,

are provided for informational purposes only and do not modify the warranty, if any, applicable to any

product. Drawings may not be to scale. Micron, the Micron logo, and all other Micron trademarks are the

property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

Update on Micron in Taiwan

© 2016 Micron Technology, Inc. All rights reserved. Information, products, and/or specifications are subject to

change without notice. All information is provided on an “AS IS” basis without warranties of any kind.

Statements regarding products, including regarding their features, availability, functionality, or compatibility,

are provided for informational purposes only and do not modify the warranty, if any, applicable to any

product. Drawings may not be to scale. Micron, the Micron logo, and all other Micron trademarks are the

property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

Mark Durcan

Chief Executive Officer

© 2016 Micron Technology, Inc.

Micron by the Numbers

37 Years strong in

2O Countries with 13 Manufacturing and R&D sites,

3O,OOO+ Team Members and

Net Sales in 2015 of

$16,1OO,OOO,OOO | March 10, 20162


Global Manufacturing Scale2

Lehi, Utah USA Manassas, VA USA

3

13

2

4

5

6

7

8

9

10

11

4

Agrate, Italy

Hiroshima, Japan

10

Akita, Japan

11

5

Muar, Malaysia

9

Xian, China

7

Taiwan (Inotera)

6

Singapore

8

Taiwan

1

Boise, Idaho USA

| March 10, 20163


We offer a diversified product mixSERVING A BROAD SET OF CUSTOMER APPLICATIONS

4 | March 10, 2016

5%

13%

3%

21%

8%

5%

6%

15%

23%

1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY15

% o

f M

icro

n T

ota

l Re

ven

ue

EndApplication

Other

SSD Storage

Other Storage

AIMM

Mobile

Compute

Networking

Other Embedded

Server

Graphics

Evolution of the

Memory Industry


Worldwide

semiconductor

market

$334B (-2% Y/Y)

Logic

$181B

-3% Y/Y

Discrete

$18B

-7% Y/Y

Analog

$21B

+2% Y/Y

Other

$36B

+3% Y/YNon-PC

$35B

PC

$10B

NAND

$31B

NOR

$2B

DRAM

$45B-2% Y/Y

Source: Gartner 4Q15 and Micron 1Memory includes DRAM, NAND, and NOR

2015 Semiconductor Market

| March 10, 20166

Non-Volatile

$33B+3% Y/Y

Memory1

$78B

-1% Y/Y


0%

50%

100%

2000 2015 2019

Auto / Embedded

Server & Networking

Mobile

PC & Graphics

Diversifying Memory Segments

Memory $

per Device1

2016-2019

Bit CAGR est.

Server & Storage

~$1,000DRAM: ~40%

NAND: ~60%

Smartphone

~$25DRAM: ~25%

NAND: ~40%

PC (with SSD)

~$100DRAM: ~10%

NAND: ~50%

Connected Autos

~$90+DRAM: ~40%

NAND: ~30%

Server & Storage: Enterprise & Cloud Server (DRAM), Enterprise & Datacenter SSD (NAND)

Smartphone: High-end Smartphones

PC: PCs with Solid State Drives (SSD)

Connected Autos: ADAS, Infotainment, other memory in high-end cellular-connected vehicles

Memory Content in Selected Segments, 2015

0%

50%

100%

2005 2015 2019

SSD

Mobile

MP3 & Consumer

USB/Cards & Other

PC DRAM bits growing from ~70% in 2000

to less than 20% in 2019

DRAM Industry Bit Mix

1DRAM and NAND only

Mobile and SSD growth from less than 5% in

2005 to over 90% in 2019

NAND Industry Bit Mix

| March 10, 20167

Source: Micron and Industry Analysts


0

50

100

150

200

250

300

350

2015 2016 2017 2018 2019

NAND Industry Bit Demand (B GB EU)

Growing and Diversifying Memory Demand

Tablets contain a mix of mobile DRAM, standard DRAM, and reduced-power solutions. Upgrade modules

included with PC.Source: Micron and Industry Analysts

| March 10, 20168

0

20

40

60

80

100

120

140

160

2015 2016 2017 2018 2019

DRAM Industry Bit Demand (B Gb EU)

Tablet

PC

Handset

AIMM

Consumer &

Graphics

Server/Storage/

Networking

Tablet

Enterprise

SSD

Other

Removable

Storage

Handset

Client SSD

Consumer

Datacenter

SSD


-20%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015 2016 2017

Capacity Technology Throughput Supply Growth

-10%

0%

10%

20%

30%

40%

50%

2011 2012 2013 2014 2015 2016 2017

Capacity Technology Throughput Supply Growth

Industry Supply Outlook


| March 10, 20169

DRAM technology-driven supply growth has been

slowing, with trend expected to continue

DRAM Industry Bit Supply Growth NAND Industry Bit Supply Growth

NAND supply growth slowing this year; demand growing

and bifurcating into mobile and storage applications

NAND supply growth expected to be ROIC-dependent

3D expecting to spur more growth at

expense of throughput

Technology-driven growth slows due to

scaling limits and market shift to value-add

solutions (e.g. mobile, DDR4, etc.)


Semiconductor Memory RevenueGROWING IN TIME AND SHOWING LESS VOLATILITY

| March 10, 201610

Peak to

Trough Decline:

-57%-49%

-23%

-18%

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Memory Revenue ($B)



Micron’s Business is Evolving

Demand Fulfillment

Relationship

Demand Creation

Relationship

Value Added

Products

OEMs

Hyperscale

Channel

Strategic Partners

ODM

Solutions

for

Emerging

Applications

Verticals/Influencers– Financial

– Oil & Gas

– Automotive

– Media

– Telecom Service Providers

– Medical

– Government

Legacy

Component

Business

OEMs

| March 10, 201611


Leading with new innovations: HMC

Evolutionary DRAM roadmaps hit limitations of bandwidth

and power efficiency

Micron introduces a new class of memory: Hybrid

Memory Cube

Unique combination of DRAMs on Logic smashes through

the memory wall

Breaking through “memory wall”

Unparalleled performance

Provides 15X the bandwidth of a DDR3

module

Uses 70% less energy per bit than existing

memory technologies

Reduces the memory footprint by nearly

90% compared to today’s RDIMMs

Key applications

Data packet processing, data packet

buffering, and storage applications

Enterprise and computing applications

How did we do it?

Micron-designed logic controller

High speed link to CPU

Massively parallel “Through Silicon

Via” connection to DRAM

| March 10, 201612


Leading with new innovations: 3D NANDHOW 3D NAND ENABLES INNOVATION

How did we do it?

We’re the first to employ floating gate cell

technology in 3D NAND—a proven cell technology

that enables better performance, quality, and

reliability. We stack 32 storage tiers to achieve the

highest-capacity NAND die available today: 256Gb

multilevel cell (MLC) and 384Gb triple-level cell (TLC)

3D NAND.

Our 3D NAND solutions bring significant

performance, power, and capacity advantages to

storage applications

Pack in More Capacity

Get 3 times the capacity of existing NAND

products—enough to enable 3.5TB gum stick-sized

SSDs or more than 10TB in standard 2.5-inch SSDs.

Boost Performance

Achieve significantly higher read/write bandwidth

and I/O speeds, as well as improved random read

performance, thanks to our 3D NAND’s fast 4K read

mode.

Save Power

Reduce power consumption significantly in standby

mode thanks to 3D NAND’s new sleep mode features

that cut power to inactive NAND die (even when

other die in the same package are active).

| March 10, 201613


Leading with new innovations: 3D XPoint™ Memory

Combining the very best capabilities of existing

technologies, 3D XPoint has the potential to

dramatically transform computing architectures

FIRST NEW MEMORY CATEGORY IN DECADES

1000XFASTER

THAN NAND

1000XENDURANCE

OF NAND

10XDENSER

THAN CONVENTIONAL MEMORY

| March 10, 201614


DRAM

NEW MEMORY A

Future Memory Technology OptionsROLE OF TAIWAN

15 | March 10, 2016

3D XPoint™ Roadmap Technology roadmap defined for multiple generations

Roadmap delivers improvements in cost/bit, performance and density

New memory options under development Performance driven (retention, speed, endurance)

Cost-focused memory

3D XPoint™ NAND

NEW MEMORY B

Highest Performance

Lowest Cost

StorageClass Memory

Importance of Taiwan

in Memory Manufacturing


Update on Inotera Transaction

Rationale Exceptional talent

Simplifies operations

100% access to cash flow- Expected to be accretive to gross margin, EBITDA, EPS & free cash flow

immediately after close

- Expect average annual incremental free cash flow greater than $600M

Leading edge 20nm technology fully deployed by close

Update

Definitive documents signed; expected to close in July 2016

Subject to approval by 2/3 of Inotera shareholders - Micron and Formosa Group companies own ~65% of shares

~$4B of incremental cost to be financed as follows:- Approximately $2.5B Taiwan debt financing

- Approximately $500M cash on balance sheet

- Up to $1B equity financing at Micron’s discretion

PURCHASE PRICE: $30 NEW TAIWAN DOLLAR PER SHARE

17 | March 10, 2016


Micron in TaiwanA STRONG PRESENCE

| March 10, 201618

A leading foreign investor and

employer in Taiwan

Strong semiconductor talent

Outstanding relations with both local

and national governments

Strong strategic partnerships

Great customer and supplier

relationships

Strategic University partnerships

Taichung: 300mm

fabrication facility

Taoyuan: 300mm

fabrication (Inotera)

Taipei: Sales and

technical support in

Taipei

Importance of Taiwan for Micron’s Success

Great talent pool

Cost competitive

Quality

Strong foundry ecosystem

Proximity to China

Broader electronic component / system manufacturer

Strong test and assembly infrastructure

Long-term energy costs

Date post:	16-Apr-2017
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