winning in the 5g era · high-value solutions micron’s mobile high-value solution revenue more...
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©2020 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 statements
regarding product 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 orbit logo, the M orbit logo,
Intelligence Accelerated™, and other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the
property of their respective owners.
Raj Talluri, SVP & GM of Mobile Business Unit
May 22nd, 2020
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Winning in the 5G Era
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Safe Harbor Statement
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During the course of this meeting, we may make projections or other forward-looking statements regarding future events or the future financial performance of the Company and the industry. We wish to caution you that such statements are predictions and that actual events or results may differ materially. We refer you to the documents the Company files from time to time with the Securities and Exchange Commission, specifically the Company’s most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause the actual results for the Company to differ materially from those contained in our projections or forward-looking statements. These certain factors can be found at http://www.micron.com/certainfactors. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of the presentation to conform these statements to actual results.
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Raj TalluriSVP, Mobile Business Unit GM ▪ 25 years of semiconductor industry experience prior to Micron
▪ 9 years at Qualcomm
▪ 16 years at Texas Instruments
▪ Ph.D. in electrical engineering from the University of Texas in Austin
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Agenda
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5G Opportunity
MBU Strategy
MBU Results
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5G Opportunity
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5G Presents a Huge Opportunity
10x+ Change in Network
Performance
Proliferation of Connected
Devices
Mobile Unit Growth Catalyst
Mobile Content Growth Driver
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10x density of devices/km2
Enabling the internet-of-thingsIncreased connection density for a large number of
devices that sense, meter and monitor
10x lower latencyReal-time multi-player cloud gaming
including VR/AR with no lagData streams from trillions of connected devices can
be managed, and low latency allows real time robotic
control
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4G 5G Magnitude of Change Is Unlike Anything Before
20x faster download speedDownload a full-length HD movie in secondsMedia-rich experiences: streaming HD and 360°
videos or mobile AR and VR any time, anywhere
4G1Gbps
5G20Gbps
4G10ms
5G1ms
4G100K
5G1M
Download speed, latency, and device density numbers represent peak values for fully mature 4G and 5G
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5G Will Connect Everything
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Mobile EdgeNew memory and
storage solutions
enhance real-time
gaming and video-
streaming
experiences
Automotive5G speeds & V2X
connectivity feed
on-board AI for
autonomous driving,
traffic management
and infotainment
Industrial IoTEnables real time data
with <1ms latency,
supporting highly
dense deployments
with up to 1M
connections per km2
Networking20x more 5G
infrastructure
peak throughput
drives memory and
storage density
DatacenterEnterprise and cloud
datacenters grow
memory and storage
to handle mobile
connections
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5G Enables Streaming Video Everywhere8K live streaming, VR-enabled content, AR map, AR education and multi-channel broadcasting offering alternative viewing angles
5G streaming video everywhere isdata-heavy and requires:Speed▪ Faster download to enable 4K (eventually 8K) streaming
▪ Faster data processing required
▪ Higher memory density and bandwidth
Capacity▪ Support more devices and more data-intensive video
▪ Fuel increased video consumption
▪ Spurs smartphone replacement demand and aspiration for more storage capacity
Latency▪ No-lag video and immediate initiation of any download requests
▪ Faster data caching required
▪ Faster memory with lower latency
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5G Use Cases Will Drive Content Growth
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Mobile
Segment
High-End
Flagship
4G to 5G Content Growth (2020)
Mid-to
Low-End
DRAM 6GB+ 8GB+
NAND 128/256 256/512GB
DRAM 6GB+ 8GB+
NAND 128GB 128/256GB
DRAM 2/4GB 6GB+
NAND 32/64GB 64/128GB
5G Use Cases
▪ 100MP+ snapshots
▪ 8K video capture/playback
▪ Multitasking + 5G upload
▪ Desktop-level gaming
▪ 64MP+ snapshots
▪ 4K video capture/playback
▪ Multitasking + 5G upload
▪ Gaming
▪ 48MP+ snapshots
▪ 2K video capture/playback
▪ Gaming
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5G-driven resumption of
smartphone replacement
2021 to 2024(After)
Slightly negative due to slowing
replacement cycle and COVID-19
2016 to 2020(Before)
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5G Is a Catalyst for Mobile Unit Growth~450M 5G unit shipments forecasted for 2021
Sources: Micron, IDC
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~15%DRAM
5G Will Drive Strong Mobile Bit Growth
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~30%NAND
2019-2022 Mobile Industry Bit CAGR Forecast
Sources: Micron, IDC
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MBU Strategy
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Micron Is Well-Positioned to Win in 5G Era
Team ExecutionTechnology &
Product Leadership
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Global Team and Footprint Enables Close Collaboration With Customers and Partners
United States
Mobile Manufacturing Sites
Customer Collaboration Sites
Europe
Japan
South Korea
Taiwan
Singapore
Malaysia
India
China
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Industry’s Best TalentOrganized to drive product and customer success
Go-to market coordination
across Micron
Align product and engineering roadmaps
Optimize supply allocation across
customers
Expertise from silicon to
customer systems
Experts in applications, trends and
solution architectures
In-depth understanding of application
architecture to device level
Collaboration across the
ecosystem
Validated architectural solutions
Proven hardware interoperability
Chipset Qualification
OEM Qualification
Carrier Qualification
Enhance end-user experience
Application performance
System & architecture optimization
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The New Micron Is Rapidly Improving ExecutionMore mobile industry firsts, enhancing our customer value proposition
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Product
Storage
Memory
MCPs
FY18 FY19 FY20
1x nm LPDDR4
Lagged industry by 1+ years
UFS2.1
Lagged industry by 1+ years
Limited portfolio
1z nm LPDDR4x
1st to ramp in mobile
uMCP4
Caught up, full portfolio support
UFS3.0
Caught up with 2.1, missed 3.0
LPDDR5
1st to support 6400Mbps speed
and 12Gb monolithic die
UFS3.1
In line with market launch
uMCP5
1st to deliver uMCP5 samples
featuring LPDDR5 and UFS3.1
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MobileTech & ProductLeadership
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Complete Mobile Portfolio Qualified with all major chipsets
Memory
LPDDR5, LPDDR4x
Storage Solutions
UFS3.1, UFS2.x, eMMC
Multichip Packages
(MCPs)
uMCP5, uMCP4x, eMCP4x
Redefining the End-User Experience▪ AI & machine learning
▪ Rapid high-resolution photo/video capture
▪ Longer battery life
▪ Shorter app launch times
▪ Multitasking capability
1.0X
1.6X
1.3X
Competition Micron
LP5 Power Consumption8k Video Recording
(lower = better)
1.0X
0.8X
Competition refers to LP5 products
offered by our industry competitors
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MBU Results
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Mobile Business Unit Results
Market Share Opportunity
Gaining in High-Value Solutions
Strong Cross-Cycle Profitability
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CY16 CY19
Micron MBU Revenues
$2.8B
$5.6B
Mobile Revenue Growth
CY16 to CY19
Industry Micron
28%
104%
Strong Revenue Growth Outpacing the Industry
Sources: Micron, Yole
Micron CY16 MBU revenues represents sum of FQ2-16 through FQ1-17
Micron CY19 MBU revenues represents sum of FQ2-19 through FQ1-20
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Gaining in MobileHigh-Value Solutions Micron’s mobile high-
value solution revenue more than tripled from 2016 to 2019,outpacing the industry.
We have more opportunity ahead.
High value solutions make up the majority of the mobile market.
2019 Industry TAM ~$39bn
Mobile
Component
NAND
Mobile
Discrete
DRAM
Mobile
High-Value
Solutions
9% 33%
58%
Mobile High-value solutions are defined as MCP plus managed discrete NAND
Source: Micron
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MBUStrong Cross-Cycle Profitability FY16-FY19
23
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
FY-16 FY-17 FY-18 FY-19
FY16 to FY19 = 33%
OpM%
33% represents the aggregate FY16 to FY19 MBU operating profits divided by revenue for the period
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Winning in the 5G Era
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5G is transformational
Micron & MBU are positioned to win
Our business results continue to improve
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Micron Confidential25