Micron restructures for AI
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Micron Technology in the US is restructuring its business units to capitalise on the growth in demand for high performance memory for AI.
The new Automotive and Embedded Business Unit (AEBU) will focus on memory and storage solutions for the automotive, industrial and consumer segments, which are most of the previous businesses. This will be led by Kris Baxter, Corporate Vice President and General Manager, who has led the Embedded Business Unit (EBU).
“Automotive OEMs, industrial, and consumer embedded customers are in the later stages of adjusting their inventory levels,” said Sanjay Mehrotra, Chairman, President and Chief Executive Officer of Micron, “In automotive, which comprises the largest portion of our EBU revenue, memory and storage content per car continues to increase
as AI-enabled in-vehicle infotainment systems become more enriched and driver assistance functions become more capable.”
He points to self-driving robo-taxi platforms today that use over 200 GB of DRAM, or 20-30x higher than the amount of DRAM in the average car.
However the main growth is expected to come from the Cloud Memory Business Unit (CMBU) and the Core Data Centre Business Unit (CDBU) and comes as memory prices, particularly in high performance memories such as HBM AI, are recovering. However NAND flash memory prices for solid state drives are predicted to fall, says market analyst TrendForce.
The CMBU is focused on memory for large hyperscale cloud customers, and high-bandwidth memory (HBM) for all data centre customers. This will be led by Raj Narasimhan, Senior Vice President and General Manager, who led the Compute and Networking Business Unit. This will include the next generation HBM4 memories that are integrated with GPUs for AI applications.
The CDBU will provide memory for OEM data centre customers and storage solutions for all data centre customers. Jeremy Werner, Senior Vice President and General Manager, who has led the Storage Business Unit (SBU), will lead CDBU.
The Mobile and Client Business Unit (MCBU) will provide memory and storage for smart phones and laptops. Mark Montierth, Corporate Vice President and General Manager, who has led the Mobile Business Unit (MBU), will lead MCBU.
Micron will begin transitioning to this new business structure immediately to finish by the end of May and all four business units will continue to report to Sumit Sadana, Executive Vice President and Chief Business Officer.
“This reorganization completes our evolution to a market segment-focused business unit structure, with exciting AI-led growth opportunities in every business unit,” said Sadana. The previous structure had separate business units for Compute and Networking, Storage, Mobile and Embedded.
HBM capacity in existing manufacturing facilities to meet requirements through 2026 as it has been sold out in 2024 and 2025. In January, it broke ground on an HBM advanced packaging facility in Singapore to expand packaging capacity from the start of 2027.
Construction of a new DRAM fab construction in Idaho completed an important construction milestone that enabled the receipt of the first disbursement of funding from the US CHIPS Act, and this will start ‘meaningful DRAM output’ in 2027. The company also has ambitious plans for a megafab in New York state to bring DRAM manufacturing back onshore.
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