Micron

Micron Technology, Inc. (MU) designs and manufactures memory and storage products used in computers, smartphones, data centres, vehicles and industrial equipment. Its DRAM holds information that a processor needs while it is working, while NAND flash stores information even when power is switched off. These technologies make digital devices faster and allow them to retain data.

Micron also produces high-bandwidth memory, or HBM, a specialised form of DRAM that supplies data rapidly to advanced processors used in AI systems. Its customers include technology companies, equipment manufacturers and distributors. The company develops manufacturing processes and operates chip production facilities, alongside using external partners for some activities. Its business therefore depends on both the performance of its memory products and its ability to manufacture them efficiently.

How Micron Makes Money

Micron makes money by selling memory chips, memory modules and storage products such as solid-state drives. Its revenue depends on how much memory it ships, the prices customers pay and the mix of products sold. Server manufacturers, cloud companies and device makers buy different types of memory according to their equipment's requirements. HBM serves demanding AI applications, but it also needs more complex manufacturing and packaging.

Memory prices can change sharply as supply and demand move. When manufacturers add more capacity than customers need, prices can weaken; when supply is tight, they can rise. Micron must also cover research, factory and equipment costs, so changes in selling prices can have a large effect on profit. A busy memory factory can therefore become much less profitable when market prices fall, even if it keeps shipping chips. Spending on new production capacity also affects how much cash remains after running the business.

For more information read our detailed breakdown of how Micron makes money.