Micron at Raymond James Conference Notes

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Ernie Maddock

DRAM is mature market

“If you think about how we project the industry growing over the course of the next three to four years. DRAM which is the more mature of the two markets it is a little bit slower growing, so less elastic demand. Our belief is that from a – how will supply come into the market, it is predominantly a technology transition story. So we don’t foresee the need for significant wafer additions in the long-term.”

Capex will be in NAND

“If you look at the NAND demand, very highly elastic this transition to 3D we believe is a major breakthrough in the industry in terms of both cost and performance, you get better cost and better performance and we do believe that over the long-term the wafer capacity will be required for NAND. That will be return on capital dependent and then finally emerging memory such as 3D XPoint and others we think will be emerging over this period of time, we a CAGR would have put it off the chart in terms of absolute scale, but these technologies will grow to be reasonable part of the portfolio, but certainly from a significance point of view NAND and DRAM over this timeframe will be the most significant technologies in which the company participates.”

3D X point is split 50/50 between us and Intel

“So the 3D XPoint is coming out of the joint venture, the joint venture and which roughly each participant gets 50% of the output at cost because we have each contributed to the capital and to the R&D. And so really it is about each companies opportunity to leverage that from a market perspective and if Intel is able to say garner higher value from its customers for the products and it includes 3D XPoint in markets and it will be benefitting disproportion but not as a result of any detriment in my comment. ”

The balance sheet should just be a function of what cash is coming in and going out

“The ideal balance sheet, gosh, I know I don’t have it. I know I’m not going to have it for a little bit of time and so it’s frankly not something I spend a lot of time thinking about because at the end of the day it’s a function of what cash is coming in, what cash is going out and believe it or not, folks expect a different answer from the CFO. I’m a big fan of investing capital if in fact the capital generates returns and consistent with the prior answer, I have a belief when I make the decision to do it but it’s a while before I determine that.”

Intel increasing NAND capacity speaks to the importance of memory

“And its, clearly Intel feels quite strongly about the memory space so on one hand it’s a really strong statement about the importance of memory in a way that it hasn’t been important to processor makers before. “