Micron restructures for AI

Micron Technology, a leading US-based semiconductor company, is making strategic changes to its business units to take advantage of the increasing demand for high-performance memory solutions in the field of artificial intelligence (AI). The company is restructuring its operations to better cater to the growing needs of various industries for advanced memory and storage technologies.

The newly formed Automotive and Embedded Business Unit (AEBU) will be focusing on providing memory and storage solutions tailored for the automotive, industrial, and consumer sectors. Kris Baxter, Corporate Vice President and General Manager, will be leading this unit, leveraging his experience from leading the Embedded Business Unit (EBU) previously.

Sanjay Mehrotra, the Chairman, President, and CEO of Micron, highlighted the importance of addressing the evolving needs of automotive OEMs, industrial, and consumer embedded customers. He emphasized the increasing demand for memory and storage solutions in vehicles, especially with the rise of AI-enabled in-vehicle systems and advanced driver assistance features.

One notable trend mentioned by Mehrotra is the significant increase in memory requirements for self-driving robo-taxi platforms, which currently utilize over 200 GB of DRAM, showcasing the growing importance of high-performance memory solutions in the automotive industry.

While the AEBU will play a crucial role in serving specific industry segments, Micron is also focusing on the Cloud Memory Business Unit (CMBU) and the Core Data Centre Business Unit (CDBU) to drive growth. The CMBU will cater to large hyperscale cloud customers, while the CDBU will provide memory and storage solutions for OEM data center customers.

• US bets $6bn to bring back DRAM memory manufacturing
• HMB4 doubles channel count for AI data

Raj Narasimhan will lead the CMBU, focusing on high-bandwidth memory (HBM) for data center customers, including the next-generation HBM4 memories integrated with GPUs for AI applications. On the other hand, Jeremy Werner will lead the CDBU, offering memory solutions for OEM data centers and storage solutions for all data center customers.

Additionally, the Mobile and Client Business Unit (MCBU) will cater to the memory and storage needs of smartphones and laptops. Mark Montierth will lead this unit, leveraging his experience from leading the Mobile Business Unit (MBU) in the past.

The transition to the new business structure is set to be completed by the end of May, with all four business units reporting to Sumit Sadana, the Executive Vice President and Chief Business Officer of Micron. Sadana expressed optimism about the growth opportunities presented by the AI-led market segments in each business unit, signaling a strategic shift towards a more focused and market-driven approach.

• Farewell to the US CHIPS Act

To meet the increasing demand for high-performance memory solutions, Micron is investing in expanding its manufacturing capabilities. The company is ramping up HBM capacity in existing facilities to meet requirements through 2026, with plans to enhance packaging capacity in Singapore starting from 2027.

Furthermore, Micron recently achieved an important milestone in the construction of a new DRAM fab in Idaho, marking progress towards meaningful DRAM output in 2027. The company is also looking to establish a megafab in New York state as part of its efforts to bring DRAM manufacturing back onshore, aligning with the broader industry trends and government initiatives.