Memory in Taiwan

Rod Morgan President of Inotera Memories, Inc.

Amazing Island

IC

Electronic

parts and

components

OEM

ODM

EMS

Taiwan: Broader electronic component / system manufacturer

2015 Semiconductor Market

Worldwide

Semiconductor

Market

US$335B

Taiwan

Semiconductor

Market

US$ 71B

Manufacturing

US$ 39B

Packaging

US$ 8B

Source: TSIA, IEK-ITRI

Design

US$ 19B

Testing

US$ 4B

0

10

20

30

40

50

60

70

2007 2008 2009 2010 2011 2012 2013 2014 2015

Semiconductor Capital Spending

Unit: Billion US$

WW Semiconductor Capital Spending

Unit: Billion US$

Taiwan Semiconductor Capital Spending

Source: Gartner

0

5

10

15

20

2007 2008 2009 2010 2011 2012 2013 2014 2015

65

15

Semiconductor Revenue

Unit: Billion US$

WW Semiconductor Revenue

Unit: Billion US$

Taiwan Semiconductor Revenue

0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012 2013 2014 2015

0

10

20

30

40

50

60

70

80

2007 2008 2009 2010 2011 2012 2013 2014 2015

335 71

Source: Gartner, TISA, IEK-ITRI

Taiwan: A Key Player in Global Manufacturing Ecosystem

Top IC Manufacturing Base

#1 in total IC Wafer Fab capacity

Undisputed leader in pure-play foundry sales

Leader in fabless design

Taiwan headquarter firms are #2 in total

fabless sales

Leader in backend assembly, test, and

package

#1 in total semiconductor assembly and test

sales

SMALL ISLAND,

GLOBAL IMPACT

Importance of Taiwan to Micron

DRAM Cluster in Taiwan

Source: DRAMeXchange

WW DRAM Capacity (4Q’15)

Unit: 300mm equiv. wafer Inotera

Nanya

Powerchip

MMT

(Rexchip)

Winbond

Micron accounted for

~57% of DRAM

capacity in Taiwan

Taiwan

31%

Korea

58%

U.S.

2% Japan

9%

Micron’s Global Manufacturing Locations

Taiwan

Virgini

a Singapore

DRAM Non-Volatile*

Japan

Utah

(IMFT) Virginia Taiwan

*Includes NAND, NOR, and 3DXpoint™

The Emergence of Taiwan in Memory Manufacturing

Manufacturing cost advantages

Increased value supply chain to Asian countries

Export-oriented trade policy

Rich, labor-intensive talent pool

Micron Footprint in Taiwan

• Micron and Nanya

partner in DRAM

Joint venture

• Micron acquires

~36% stake from

Qimonda in Inotera

• Inotera begins

running Micron

process technology

• Transitions to 50nm

DRAM

• Inotera transitions

to 42nm DRAM

• JV Restructure – Micron

gains rights to 100% of

Inotera Memories

output

• Inotera transitions to

30nm DRAM

• Micron acquires

• Inotera 100%

converted to

20nm

• 1xnm DRAM

manufacturing

start in MMT

• Micron announces acquisition of

Inotera

• DRAM Output: ~200K WPM

(~18% of worldwide DRAM

production)

2008 2010 2011 2013 2014 2015 2016

Micron’s DRAM Deployment

20nm DRAM ramp

1X DRAM manufacturing enablement; production ramp in FY-17

1Y and 1Z development

IMFT

Intel

Rexchip

Elpida

TI

Toshiba

Inotera

Hynix

Hyundai

LG Semi

ProMOS

Thomson

Intel

DRAM

IBM

National

Semi Motorola

Matsushita

Inmos

AT&T

Fairchild

AMD

NMB Semi

Nippon

Steel

NEC

Mitsubishi

Hitachi

Siemens

AG

Infineon

Qimonda

NMB Semi

Nippon

Steel

NEC

Mitsubishi

Hitachi

IMFT

Intel

Rexchip

Elpida

TI

Toshiba Hynix

Hyundai

LG Semi

ProMOS

Thomson

Intel

DRAM

IBM

National

Semi Motorola

Matsushita

Inmos

AT&T

Fairchild

AMD

Nanya

Siemens

AG

Infineon

Qimonda

SK Hynix

PSC

Winbond

Cypress

Macronix

Samsung

SanDisk /

Toshiba

Micron

Inotera

Memory Consolidation

Business

Partnership

CapEx

Technology

Q & A