00:00We are here in Manassas, Virginia, to mark the start of the One Alpha DRAM manufacturing in the
00:06United States for one of the most highly advanced and widely used memory chips. I know Micron has
00:13a commitment to onshore 40% of its DRAM manufacturing. Can you just give us a little
00:19bit of insight? How does today help you with achieving that goal? So first of all, Tyler,
00:23thank you very much for having me on the show. In terms of what today means, it really means,
00:28as you noted, bringing the most advanced DDR4 memory built with One Alpha technology, which is
00:37critical for industries like automotive, aerospace, defense, industrial, networking. These are critical
00:46industries that power America. And by us bringing this technology from Asia into now manufacturing
00:54here, it will help us quadruple our production here at this site in Manassas for their DDR4 memory.
01:02This is going to be huge for our customers in those key sectors. Memory today is absolutely key
01:09across all industries that have electronic systems. And Micron is, of course, investing in Boise, Idaho,
01:17building our leading edge fab. That's for leading edge memory that goes into smartphones, PCs, servers.
01:26And that leading edge memory in Boise, Idaho will bring first wafers out middle of next year and then ramp
01:33up from there on.
01:34We'll have a second fab in Boise, Idaho soon to follow that. Start first wafers by end of 2028 there.
01:42And then we have production planned for Syracuse, New York area where we'll build over time a mega cluster or
01:50four fabs.
01:51And you can see $200 billion of investments that Micron is making here in America to bring these long life
02:00cycle production that will be managed here in Manassas,
02:03Virginia along with production in Boise, Idaho and Syracuse, New York. And that will bring Micron's total production
02:12over the course of about next 10 years as we ramp up all these multiple fabs to about 40%
02:19of our production.
02:20By comparison, it is about 10% today. And all of that 10% comes from this site here in
02:28Manassas for Micron.
02:29And this will totally add investments, massive investments in long life cycle technology nodes, as well as leading edge technology
02:38nodes
02:38to serve these vast markets that are really surging in demand driven by AI. Micron is going to be bringing
02:45those investments.
02:46That's semiconductor manufacturing and in the process create 90,000 new jobs here in the U.S. as well.
02:53Well, on this point of demand and how this investment is seeking to help reach that growing demand,
03:00I'm wondering how long do you expect the shortage of memory chips to last? When can we expect an easing?
03:06Of course, the demand for memory has really surged. And that is because of the importance and the value
03:13and the capability of memory that is really essential for all advanced systems. And yes, there is a shortage,
03:22but Micron is working hard to increase supply through these projects here in America, here in Manassas, Virginia,
03:30Boise, and New York. And we see this shortage continuing beyond, well beyond 2026 timeframe.
03:38But the important thing is that Micron is working hard with our customers, working also on the long-term
03:45supply agreements with our customers to really ensure that they can have predictability for supply.
03:52And of course, Micron can have the confidence for the investments that we are really committing to here for the
03:59long haul.
04:00Well, historically, memory is a cyclical business, right? Periods of boom, periods of bust. I'm wondering if a $200 billion
04:06investment
04:07here in the U.S. signals perhaps more of a confidence that that demand, that high demand, is going to
04:14be permanent,
04:15or are there concerns here that the industry could be overbuilding capacity?
04:20You know, of course, what we are doing is building these fabs, which are very long lead-time items, as
04:27you can see,
04:27in terms of what we are doing in Boise and New York. It really takes several years just to build,
04:33construct the shell.
04:35How we equip that shell really very much depends on our latest assessments of demand at a given time.
04:43So, the important thing is to have that preparedness to meet the market demand, and memory has become a key
04:50enabler.
04:50It is a strategic asset for our customers today. It is a strategic asset for AI across consumer, as well
04:59as data center industries,
05:01because without memory, you don't really have that intelligence that is critically important for the future roadmaps that our customers
05:10have.
05:11So, memory is critical. Our investments, of course, will always be managed with discipline.
05:17Today, we are able to meet the demand of our key customers, only about 50% to about two-thirds
05:24in many cases.
05:26And it's really important that we, of course, bring up this supply with discipline and continue to really fuel the
05:34growing demand,
05:35provide, you know, serve the necessary demand that is ahead.
05:40Where are your biggest bottlenecks right now in the supply chain?
05:43And I'm wondering how labor fits into that picture, because a lot of the announcement here today was about boosting
05:49jobs here in the U.S.
05:51As I mentioned earlier, I mean, our investments will create 90,000 new jobs.
05:55These are high paying jobs. Of course, Micron is very much focused on engaging with the communities,
06:03with the colleges and universities, with really local systems in order to even support and advance apprenticeships.
06:12So, we are very much focused on investing for the training and development of the workforce across the United States,
06:20particularly in the regions where Micron plans to have these fabs.
06:25And that is, of course, an important critical priority.
06:27In terms of, you know, the bottleneck, in terms of bringing up the supply,
06:32of course, it is the construction that is a really long tent in the pool.
06:38And as construction happens, then it is about bringing in the equipment and qualifying the lines,
06:44which also takes some period of time. And that's why we see that meaningful new supply in the industry
06:52doesn't really start ramping until 2028 timeframe, because our Boise, Idaho fab will have first wafers out
07:01middle of next year, and subsequent fabs will have wafers out later in the future as well.
07:06Does it advantage you to be the only American company in this space working with the Trump administration
07:12in this way? I'm wondering if you could shed any light on that. And where does this position you against
07:17your largest competitors like Samsung, SK Hynix, when it comes to market share?
07:22I'm very proud of Micron's team. And of course, very proud that we are the only U.S. memory manufacturer
07:30and memory today is absolutely critical for everything electronic system. So yes, very proud. And of course,
07:38our customers here in the U.S. very much value our investments in the U.S. They value resilient,
07:46secure supply chains that Micron is investing in to support their future growing requirements.
07:52We are very pleased with the partnership, the engagement. We are very thankful to President
07:58Trump and his administration and his focus on bringing leading edge manufacturing here to America
08:07to support a wide range of our industries. And our partnership with the administration is strong.
08:13As you saw, I mean, Secretary Lutnik, as well as Ambassador Greer, made strong comments in support
08:21of our investments today. We are very thankful to President Trump for the support. And we are very much
08:26focused on making our supply grow so that we can meet our customers' requirements, but have it grow
08:35in a disciplined manner, focusing on, of course, always demand and supply, and of course, accelerating
08:42the timeline for our investments as much as possible. In the final minute that I have you, you mentioned
08:47U.S. Commerce Secretary Howard Lutnik, who gave remarks today. I think it's fair to say that he's been
08:52pretty integral in the administration's perhaps more hands-on industrial policy, including when it comes to
08:59taking stakes in companies. The U.S. government has done this to try to spur the kind of production
09:04that Micron's doing. But I'm wondering, have you had any conversations with the administration about
09:09that? Our discussions with the administration are always focused on bringing up supply. You know,
09:15President Trump, as well as Secretary Lutnik, are always focused on how do we go bigger, how do we go
09:21faster, particularly when the supply is tight? And Micron is a technology leader today. We are a global
09:28technology leader today. Our DRAM, as well as NAND technology, are most advanced ahead of others in
09:37the industry. Leveraging that technology leadership and building the future of America with large-scale
09:46manufacturing is absolutely a priority of President Trump, Secretary Lutnik, and our discussion
09:51organizations with the administration.
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