Micron Technology, Inc. (MU): Business Model Canvas [Dec-2025 Updated]

You're trying to map out where Micron Technology, Inc. is headed, and honestly, the story for fiscal year 2025 is all about the AI data center pivot. Forget the old consumer focus for a second; the numbers show this shift is real: Data Center revenue hit 56% of their total sales, fueled by $10 billion from high-value AI memory like HBM3e. This aggressive move required them to commit $13.80 billion in capital expenditures that year alone, signaling a high-stakes bet on their manufacturing leadership. Check out the full Business Model Canvas below to see exactly how their key partnerships and activities are set up to support this new, memory-intensive future.

Micron Technology, Inc. (MU) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships that keep Micron Technology, Inc.'s advanced memory business running strong, especially given the AI demand surge we've seen through late 2025. These aren't just vendor relationships; they are deep technical alliances.

Strategic co-development with Intel and AMD on platform validation

Micron Technology, Inc. locks in its technology relevance by validating products directly with major processor architects. This ensures your memory and storage solutions work perfectly when new CPUs hit the market. For instance, the collaboration with Intel Corporation involved validating the 4th Gen Intel® Xeon® Scalable processor family alongside Micron DDR5 and storage technologies.

The relationship with Advanced Micro Devices (AMD) is also key, especially in the high-performance computing space. Micron Technology, Inc. has HBM3e supply deals in place with AMD. To give you a sense of scale on the partner ecosystem, Partnerbase data shows Micron Technology, Inc. has 63 listed partners under AMD.

Critical supply agreements with Nvidia for HBM3e chips

The relationship with Nvidia Corporation is perhaps the most financially impactful right now, given the AI boom. Micron Technology, Inc. has been tapped to provide the latest High Bandwidth Memory 3E (HBM3e) for Nvidia's upcoming H200 accelerator. Honestly, the demand is so high that Micron Technology, Inc.'s entire HBM supply was sold out for calendar 2024, and the overwhelming majority of its 2025 supply was already allocated as of early 2025 reports.

The HBM total available market is projected to top $25 billion in 2025. Micron Technology, Inc. is pushing hard to capture share here, moving toward roughly a quarter of the HBM market with 20% of shipments as production ramps up. The company is readying its 12-layer HBM3e design for ramping throughout 2025, aiming for bandwidths beyond 2TB/s in the next generation.

This focus on AI infrastructure is reflected in the company's structure; Micron Technology, Inc.'s Data Center business now accounts for 56% of total revenue. Furthermore, the Technology Enablement Program (TEP) includes specific co-development on the NVIDIA GB300 Grace™ Blackwell Ultra Superchip using Micron's SOCAMM solution.

Here's a snapshot of the AI-related partnership scale:

Collaboration with major ODM server vendors for enterprise product integration

Micron Technology, Inc. maintains close working relationships with major Original Design Manufacturers (ODMs) in the server space. This is essential for ensuring that Micron Enterprise DRAM and Solid State Drive (SSD) products appear on the AVL list (Approved Vendor List) for various server platforms.

The key action here is ensuring product compatibility and reliability before mass deployment. You can check the specific AVL status by server platform model directly on Micron Technology, Inc.'s partner pages.

US Department of Commerce for CHIPS Act funding (e.g., $275 million for Manassas)

Government support is a massive part of the capital expenditure strategy. Micron Technology, Inc. has finalized a direct funding award of $275 million from the CHIPS Act to support the expansion and modernization of its Manassas, Virginia facility. This specific investment is targeted to onshore the 1-alpha DRAM node.

This Manassas expansion is part of a much larger commitment. Micron Technology, Inc. announced plans for approximately $150 billion in domestic memory manufacturing and $50 billion in Research and Development company-wide. The goal of these combined U.S. investments is to support the production of 40% of the company's DRAM domestically.

For context on the total federal support, the company has also secured up to $6.165 billion in total CHIPS Act direct funding to support its planned fabs in Idaho and New York.

Ecosystem partners for advanced technology enablement (TEP)

Beyond direct customer/supplier ties, Micron Technology, Inc. fosters an ecosystem for early technology adoption. The Technology Enablement Program (TEP) is the formal path for hardware and software vendors to gain early access to technical insights.

The commitment to these alliances was recognized recently. Micron Technology, Inc. celebrated its annual Supplier Awards for fiscal 2025, recognizing 14 top-performing partners for their contributions to cost, quality, delivery, partnership, and innovation. These alliances are crucial for the flawless high-volume production of the most advanced tech nodes.

Key elements of the ecosystem engagement include:

• Gaining early technical insights via the TEP.
• Collaborating with over 100 influential suppliers, as seen at the 2024 Supplier Day.
• Recognizing 14 outstanding suppliers in fiscal 2025.
• Working with partners to support the construction of new fabs in the U.S. and Asia.

Finance: draft 13-week cash view by Friday.

Micron Technology, Inc. (MU) - Canvas Business Model: Key Activities

You're looking at the core operational engine of Micron Technology, Inc. right now, which is all about shifting capacity and prioritizing the highest-growth, highest-margin opportunities in memory. This means the day-to-day activities are heavily weighted toward advanced manufacturing and securing future technology leadership, especially in the Artificial Intelligence (AI) space.

Manufacturing and scaling of 1$\gamma$ DRAM and HBM products

Micron Technology, Inc. is actively scaling its most advanced process nodes to meet the intense demand for High Bandwidth Memory (HBM) and leading-edge DRAM. The company was preparing to ramp its 1$\gamma$ (1-gamma) technology node, which utilizes extreme ultraviolet (EUV) lithography, in calendar 2025. This node is crucial, as the 1$\gamma$ ramp is expected to be the primary driver of fiscal year 2026 bit supply growth. The preceding 1$\beta$ (1-beta) technology node is what supports the current HBM3E products. As of late 2025, Micron Technology, Inc. accounts for around a third of global DRAM and HBM production. The company's Data Center business reached a record 56% of total company revenue in fiscal 2025.

The focus on high-value products is clear in the financials:

Massive R&D investment for HBM4 and next-gen memory roadmap

A key activity is the intense focus on next-generation memory development to maintain a competitive edge. Micron Technology, Inc. is heavily prioritizing R&D programs, especially for HBM. The roadmap includes HBM4, which is slated for high-volume industry ramp in calendar 2026. This next-gen product is expected to boost performance by over 50% compared to HBM3E while offering 20% lower power consumption. Furthermore, development is underway for HBM4E, which will feature customized logic base dies in partnership with Taiwan Semiconductor Manufacturing Company. The company's HBM capacity, including HBM4, is reported as sold out for 2026, signaling strong forward demand visibility.

Global supply chain management and manufacturing diversification

Managing the global footprint is critical to supporting the AI build-out and mitigating geopolitical risk. This involves significant capital allocation toward diversification. Micron Technology, Inc. has made substantial commitments to expand manufacturing outside of its traditional base. For instance, the company has a reported $7 billion investment planned for a Singapore packaging facility to enhance regional resilience. Looking further out, there is a reported plan to invest 1.5 trillion yen, or approximately $9.6 billion, in a new dedicated HBM facility in Hiroshima, Japan, with construction scheduled to start in May 2026.

The company's supply chain management activity is also characterized by strategic realignment:

• Reallocating output from the consumer channel to enterprise-grade DRAM and SSDs.
• Securing pricing agreements for a vast majority of HBM3E supply in calendar 2026.
• Working to conclude agreements to sell out the remainder of total HBM calendar 2026 supply.

Strategic exit from the Crucial consumer business by early 2026

To free up capacity and resources for the data center segment, Micron Technology, Inc. is executing a strategic wind-down of its Crucial consumer-branded products. Shipments under the Crucial name, which includes consumer DDR4/DDR5 RAM and NVMe SSDs, will continue only until the end of fiscal Q2, which concludes in late February 2026. This move is explicitly designed to improve supply availability for larger, strategic customers in faster-growing segments. The company has committed to honoring all warranty obligations and providing technical support for existing Crucial products well after shipments cease.

Execution of $\text{13.80 billion}$ in FY2025 capital expenditures

The commitment to future capacity is quantified by the massive capital spending in the last fiscal year. Micron Technology, Inc. executed investments in capital expenditures, net, totaling $13.80 billion for the full fiscal year 2025. To put that number in perspective, that $\text{13.8 billion}$ spend is more than half of the company's entire fiscal 2025 revenue of $\text{37.38 billion}$. The company has explicitly stated plans to increase this spending further in fiscal 2026, guiding net CapEx to exceed $18 billion for that year, with the vast majority allocated to DRAM construction and equipment.

Here's how that investment compares to cash generation:

Finance: draft 13-week cash view by Friday.

Micron Technology, Inc. (MU) - Canvas Business Model: Key Resources

You're looking at the core assets that let Micron Technology, Inc. capture the massive AI spending wave. These aren't just things they own; they are the engines driving their near-term financial outperformance. Honestly, the shift in focus is as important as the physical assets.

Advanced Manufacturing Facilities (Fabs) in the US, Japan, and Asia

Micron Technology, Inc. is the only U.S.-based memory manufacturer, which is a key differentiator in the current geopolitical climate. They are aggressively expanding this footprint, backed by significant government incentives.

The company is making massive capital commitments to secure future capacity, especially for AI-critical memory:

• Planned investment in a new HBM chip factory in Hiroshima, Japan, is approximately $9.6 billion (¥1.5 trillion).
• The U.S. expansion includes an investment up to $2.17 billion to modernize the Manassas, VA facility, creating 340 new jobs.
• Micron finalized an agreement for up to $6.1 billion under the CHIPS and Science Act to support advanced DRAM fabs in Idaho and New York.
• This is part of a larger strategic bet, with a total U.S. manufacturing plan cited at $150 billion within a $200 billion investment framework.

Intellectual Property and Patents for DRAM and NAND Technology

The value here isn't a simple patent count; it's the demonstrated ability to execute on the most advanced process nodes. Their IP is embedded in the performance lead they are carving out in high-margin segments.

Micron Technology, Inc. is actively managing its technology ramps to maintain this edge:

• They are ramping the 1$\beta$ (1-beta) technology node, which supports HBM3E.
• They are preparing to ramp the 1$\gamma$ (1-gamma) technology node using extreme ultraviolet (EUV) lithography in calendar 2025.
• In NAND, they maintain leadership with the G8 and G9 nodes.

High Bandwidth Memory (HBM3e) and 1$\gamma$ DRAM Process Leadership

This is where the immediate revenue impact is seen. Micron Technology, Inc. skipped HBM3 to leap directly to HBM3E, and their execution is showing up in the financials. They expect their HBM market share to match their overall DRAM market share sometime in the second half of calendar 2025.

Here's a look at the financial scale of this leadership as of FY2025:

Strong Balance Sheet with $11.94 billion in Cash/Investments (FY2025 end)

You need dry powder to fund these massive CapEx plans, and Micron Technology, Inc. has it. This liquidity provides operational flexibility, especially when making strategic pivots like exiting the consumer market.

The financial strength at the close of Fiscal Year 2025 was substantial:

• Cash, marketable investments, and restricted cash totaled $11.94 billion as of August 28, 2025.
• This is up from $9.15 billion at the end of the prior fiscal year (FY2024).
• Operating cash flow for the full year 2025 was $17.53 billion.

Skilled Engineering Talent Focused on AI and Data Center Solutions

The company is explicitly reallocating its people resources to align with its highest-growth, highest-margin areas. They are moving investment and talent toward the enterprise portfolio, making AI workloads the decisive factor in their strategy.

The focus shift is clear in the revenue mix:

• The Data Center business hit a record 56% of total company revenue in fiscal 2025.
• The Cloud Memory Business Unit revenue hit a record $4.5 billion in Q4 FY2025, representing 40% of total company revenue.
• The company is stopping development on future mobile managed NAND products to focus resources elsewhere.

Finance: draft 13-week cash view by Friday.

Micron Technology, Inc. (MU) - Canvas Business Model: Value Propositions

You're looking at the core reasons why strategic customers choose Micron Technology, Inc. over competitors, especially as the AI buildout demands higher performance and guaranteed supply. Here's the data-driven breakdown of what Micron is delivering as of late 2025.

Industry-leading HBM3e for AI accelerators and high-performance computing

Micron Technology, Inc. is delivering memory solutions built specifically for the intense demands of generative AI and supercomputing platforms. The HBM3e product line offers tangible performance gains over previous generations.

The demand for this technology is clear: Micron Technology, Inc. confirmed its entire High Bandwidth Memory (HBM) supply for calendar year 2025 is sold out. In Fiscal Q4 2025, HBM revenue alone climbed to nearly $2 billion, suggesting an annualized run rate approaching $8 billion.

High-capacity, energy-efficient memory for hyperscale data centers

The focus on data centers is central to Micron Technology, Inc.'s current success. This segment drove the company to a record fiscal year.

• Data center business accounted for a record 56% of total company revenue in fiscal 2025.
• The Cloud Memory Business Unit (CMBU) generated $4.543 billion in Q4 2025 revenue.
• CMBU achieved a gross margin of 59% and an operating margin of 48% in Q4 2025.
• The combined revenue from HBM, high-capacity DIMMs, and LP server DRAM reached $10 billion for fiscal 2025.

This segment's performance contributed to a fiscal 2025 total revenue of $37.38 billion.

Supply chain resilience as the only U.S.-based memory manufacturer

Micron Technology, Inc.'s position as the only U.S.-based memory manufacturer is a key value driver, especially amid geopolitical considerations. The company is making massive capital commitments to onshore critical production.

The company spent $13.88 billion in capital expenditures in fiscal 2025. Furthermore, the Boise advanced-memory fab received a $6.1 billion award to bring high-bandwidth memory production onshore. Overall, Micron Technology, Inc. plans to invest more than $150 billion globally in semiconductor manufacturing.

Broad portfolio of high-performance DRAM, NAND, and NOR products

While AI memory is the immediate growth engine, the value proposition rests on a full spectrum of memory and storage solutions. In Q4 2025, DRAM revenue alone was $7.1 billion, making up 76% of the quarter's total revenue.

The strategic shift is evident in the product mix. Micron Technology, Inc. announced it will shutter its Crucial consumer brand by February 2026 to reallocate capacity to enterprise segments. This move prioritizes higher-margin products over consumer markets that generate thinner margins.

Guaranteed supply via multiyear, long-term contracts for strategic customers

The pivot to enterprise focus means securing supply for hyperscale cloud providers through long-term agreements. This contrasts with the volatile pricing in consumer markets.

The tight supply environment is expected to sustain pricing power. Some DRAM prices have climbed between 20-70% since September 2025, driven by these forward contracts and restricted supply. The company expects a healthy demand-supply environment for overall DRAM in 2026, which supports profitability.

Micron Technology, Inc. (MU) - Canvas Business Model: Customer Relationships

You're looking at how Micron Technology, Inc. manages its most important client relationships as of late 2025. The strategy is clearly weighted toward the highest-value, fastest-growing segments, which means a very direct, high-touch approach for a select group of buyers.

Dedicated direct sales and technical support for large OEMs and hyperscalers

Micron Technology, Inc. has made a decisive pivot, evidenced by the exit from its Crucial consumer memory business, which will cease retail sales by February 2026 after a 29-year run. This move directly frees up capacity to support larger, strategic customers. The focus is squarely on enterprise and data center clients, where the Cloud Memory Business Unit (CMBU) revenue reached $4.5 billion and represented 40% of total company revenue in a recent quarter. In fiscal year 2025, the data center end market accounted for 56% of total company revenue. Honestly, when over 50% of your total revenue comes from your top ten customers, the relationship is inherently direct and high-touch.

Strategic, long-term supply agreements to secure high-value products

The nature of the relationship is solidified through long-term commitments, especially for High Bandwidth Memory (HBM) products. Supply agreements for HBM3E and HBM4 have been completed through 2026. This is a clear indicator of securing future revenue streams. To be fair, the demand from tech giants like Microsoft, Google, and ByteDance was so strong in October 2025 that they reportedly asked Micron for 'indefinite orders,' indicating intent to take as much volume as Micron could deliver regardless of price. The HBM business itself posted strong growth, with Q4 2025 revenue nearing $2 billion, suggesting an annualized run rate near $8 billion.

Here's a quick look at the revenue concentration and product mix shift:

Co-engineering and early access programs for next-gen technology

Micron Technology, Inc. is deeply embedded in the design cycles of its largest customers, which is the definition of co-engineering in this space. For instance, the Small Outline Compression Attached Memory Module (SOCAMM) was developed in close collaboration with NVIDIA to enhance the GB300 Grace Blackwell Ultra Superchip. Micron is the only memory provider shipping both HBM3E and SOCAMM products. Furthermore, Micron is a major supplier of 12H HBM3E memory for AMD's MI350 chip, which boasts 288GB of high-bandwidth memory. The company is also preparing for the future, with plans to sample HBM4 next year.

The relationships are built on enabling the next wave of AI hardware:

• SOCAMM solution is in volume production for the NVIDIA GB300 platform.
• HBM3E solutions offer 30% lower power compared to competition.
• Micron is leading node transitions, showcasing 1-gamma DRAM technology.
• They are working on HBM4 development, with mass production planned for the future.

High-touch, consultative model for enterprise and data center clients

The shift away from the consumer market means that every interaction with enterprise and data center clients is strategic and consultative, focused on complex, high-value products like HBM and advanced SSDs. The company's overall profitability improvement to a consolidated gross margin of 40% in 2025 from 22% in 2024 is directly tied to this mix shift toward these high-value segments. This consultative approach is necessary because these products, like the 12H HBM3E or advanced data center SSDs, require tight co-design with the chip makers.

Providing defintely reliable product quality and long-term warranty support

Even while aggressively reallocating capacity, Micron Technology, Inc. is maintaining its commitment to existing customers on legacy products. The company explicitly stated it will continue warranty services and support for existing Crucial consumer products even as it winds down retail sales through February 2026. This ensures that the transition does not immediately damage the trust built over 29 years with the channel, even as the strategic focus shifts entirely to enterprise-grade memory and storage sold through commercial channels.

Micron Technology, Inc. (MU) - Canvas Business Model: Channels

You're looking at how Micron Technology, Inc. moves its memory and storage products to market as of late 2025. The strategy has clearly pivoted, driven by massive AI infrastructure buildouts.

Direct sales force to Hyperscale Cloud Providers (primary channel)

This is the core focus now. The Data Center segment showed exceptional strength, reporting 400% year-over-year growth in fiscal Q1 2025. This segment now represents over 50% of Micron Technology, Inc.'s total revenue. Furthermore, the Cloud Memory Business Unit reached record revenues, making up 40% of total sales in a recent quarter. High-Bandwidth Memory (HBM) revenue was nearly $2 billion in the August quarter (Q4 Fiscal 2025), which implies an annualized run rate of nearly $8 billion based on CEO Sanjay Mehrotra's comments in September 2025. This channel is prioritized to support larger, strategic customers driving AI demand.

Direct sales to major OEMs (e.g., Dell, HPE, Cisco)

While the search results emphasize the Data Center segment's dominance, the overall strength in enterprise and server demand supports direct engagement with major Original Equipment Manufacturers (OEMs). The company's focus on high-performance DRAM and advanced storage technologies directly serves the needs of these large system builders who are deploying AI-centric infrastructure.

Commercial channel for Micron-branded enterprise products

Micron Technology, Inc. explicitly continues to support the sale of its Micron-branded enterprise products to commercial channel customers globally. This channel handles sales outside the direct hyperscaler relationship, serving enterprise and other commercial buyers with their memory and storage needs. Low-End DRAM (DDR4/LP4) exposure, which is less strategic, represented about 10% of total company revenue for the remainder of Fiscal Year 2025.

Winding down the Crucial brand retail/e-tail distribution channel

Micron Technology, Inc. announced on December 3, 2025, that it is exiting the Crucial consumer business. This means ending the sale of Crucial consumer-branded products at key retailers, e-tailers, and distributors worldwide. Shipments through this consumer channel will continue until the end of fiscal Q2 2026, which ends in February 2026. This move is to reallocate manufacturing capacity toward higher-margin enterprise and hyperscale customers. The Crucial brand had a 29-year presence in the consumer market.

Technology Enablement Program (TEP) for hardware/software vendors

The Technology Enablement Program (TEP) offers ecosystem partners a path to gain early access to technical insights. This program is specifically designed for both hardware and software vendors to align their development with Micron Technology, Inc.'s latest offerings.

Here's a quick look at the channel focus shift based on recent data:

The company's total Fiscal 2025 revenue reached $37.38 billion. The TEP provides design tools and technical documentation, including power calculators and simulation models, to partners.

• TEP provides early access to technical insights.
• TEP supports both hardware and software vendors.
• Micron DDR5 offers up to 2X the effective bandwidth compared to DDR4.

Finance: draft 13-week cash view by Friday.

Micron Technology, Inc. (MU) - Canvas Business Model: Customer Segments

You're looking at the core of Micron Technology, Inc.'s revenue engine as of late 2025. The customer base has clearly tilted heavily toward high-performance computing needs, which is where the big money is right now.

Data Center/Hyperscale Cloud Providers is the anchor, representing a massive 56% of fiscal 2025 revenue. This segment is driving demand for the most advanced memory, especially High Bandwidth Memory (HBM). We estimate HBM revenue alone was around 15% of total fiscal 2025 revenue, while premium products, which include HBM and select DRAM and NAND, accounted for roughly 35% of the total. The overall fiscal 2025 revenue for Micron Technology, Inc. hit a record $37.38 billion.

The business unit reporting gives us a clearer, albeit Q4 2025 snapshot, of how these customer types break down:

The MCBU, which covers Mobile Device OEMs and Client PC and Consumer Electronics OEMs, pulled in $3.76 billion in Q4 2025, with a gross margin of 36%. This unit saw sequential growth driven by higher DRAM shipments and improved pricing.

The Automotive and Industrial Control Systems manufacturers are served by the AEBU. This unit posted Q4 2025 revenue of $1.434 billion and achieved a gross margin of 31%, showing sequential improvement from higher pricing.

When looking at the product level for the full fiscal year 2025, DRAM Products were the clear leader, generating $28.58 Billion, which is 77.07% of total revenue. NAND Products generated $8.50 Billion, or 22.93% of the total.

Here are the key customer-facing drivers Micron Technology, Inc. is focused on:

• Data Center/Hyperscale Cloud Providers: 56% of FY2025 revenue.
• HBM Revenue (FY2025 estimate): Approximately 15% of total revenue.
• Mobile and Client Business Unit (MCBU) Q4 2025 Revenue: $3.76 billion.
• Automotive and Embedded Business Unit (AEBU) Q4 2025 Revenue: $1.434 billion.
• CMBU Q4 2025 Gross Margin: 59%.

The combined revenue from HBM, high-capacity DIMMs, and LP server DRAM reached $10 billion in fiscal 2025, which is more than a five-fold increase. Finance: draft 13-week cash view by Friday.

Micron Technology, Inc. (MU) - Canvas Business Model: Cost Structure

When you look at Micron Technology, Inc.'s cost structure, you're looking at a business defined by massive, necessary upfront investment to stay ahead in memory technology. This isn't a low-overhead operation; it's a capital-intensive game of process leadership.

High Capital Intensity Driven by CapEx

The sheer scale of capital expenditure (CapEx) is the most immediate cost driver. For the fiscal year ending in August 2025, Micron invested a staggering $13.80 billion in capital expenditures. This level of spending is what keeps the company at the leading edge, funding the construction of new fabs and the purchase of highly specialized equipment.

To put that in perspective against the year's performance, the fiscal 2025 CapEx represented a significant portion of the record $37.4 billion in revenue achieved that year. Management has signaled this intensity will continue, expecting fiscal 2026 CapEx to be higher than the 2025 levels, primarily directed at DRAM front-end equipment and fab construction to support the 1$\gamma$ node migration and HBM growth.

The cost structure is heavily weighted toward these long-term assets, which is typical for a leading semiconductor manufacturer. Here is a look at the scale of investment:

Significant R&D Costs for Advanced Node Migration

Staying competitive means pouring resources into Research and Development (R&D) to transition to the next process node, which is where the real cost of innovation lives. The focus is heavily on the 1$\gamma$ DRAM node and High Bandwidth Memory (HBM). These R&D efforts are essential because the 1$\gamma$ technology, for instance, offers more than 30% greater bit density per wafer compared to the prior 1$\beta$ node and greater than 20% lower power consumption.

These R&D expenses are baked into the operating expenses, but the underlying investment is clear:

• R&D supports the ramp of 1$\gamma$ DRAM, which began shipping samples in early 2025.
• Significant funds are dedicated to HBM development, including next-gen HBM4 targeting 2026 volume production.
• The overall investment plan includes a commitment of $50 billion for R&D globally over the next decade.

The sequential increase in operating expenses for Q1 FY2026 is explicitly tied to R&D related to data center product innovation and development.

Cost of Goods Sold (COGS) Drivers

The COGS is dominated by the costs associated with wafer fabrication and the subsequent assembly and test processes. While a direct COGS breakdown isn't provided, the cost efficiency improvements across the product lines show where the manufacturing team is focusing its cost-saving efforts:

• Fiscal 2025 DRAM front-end cost reductions (excluding HBM) were expected in the mid- to high-single-digits percentage range.
• Fiscal 2025 NAND front-end cost reductions were projected in the low-teens percentage range.
• The Compute and Networking Business Unit (CMBU), which includes HBM, saw its gross margin hit 57% in Q4 FY25, showing that high-value product mix significantly impacts the overall cost structure effectiveness.

The entire manufacturing flow, from wafer fabrication to final test, is a complex, multi-step process requiring immense control over materials and environment.

Operating Expenses Projection

Looking ahead to the start of fiscal 2026, the projected operating expenses (OpEx) give you a clear view of near-term overhead. For the first quarter of fiscal 2026, Micron projected non-GAAP operating expenses to be around $1.34 billion, plus or minus $20 million. This quarterly figure is the baseline for SG&A (Selling, General, and Administrative) and R&D before factoring in the impact of the 53-week fiscal year in 2026, which will add an extra week of costs compared to the 52-week fiscal 2025.

Manufacturing Costs Tied to Global Fab Operations

The global footprint itself is a major cost component, heavily subsidized but still requiring massive internal investment. These costs cover utilities, maintenance, and labor across facilities in the US, Japan, and Singapore. The company is actively managing these costs through government partnerships:

• Micron finalized an agreement for up to $6.1 billion under the CHIPS and Science Act to support advanced DRAM fabs in Idaho and New York.
• Plans to expand manufacturing in Singapore include an investment for a new HBM advanced packaging facility.
• The 1$\gamma$ DRAM process technology in Japan involves spending about 500 billion yen (roughly $3.6 billion) over the next few years.

These government incentives help offset the fact that U.S. memory manufacturing costs historically run 35-45% higher than in lower-cost markets.

Micron Technology, Inc. (MU) - Canvas Business Model: Revenue Streams

You're looking at the money-making engine for Micron Technology, Inc. as of late 2025, focusing on where the record $37.38 billion in full-year revenue actually came from. The streams are heavily weighted toward high-performance computing, which is a big shift from just a few years ago.

The core of the revenue generation still rests on two primary product families, DRAM and NAND, but the mix is dramatically different now, reflecting the AI buildout.

Here's the quick math on the primary product sales for fiscal year 2025:

The DRAM segment is clearly the dominant revenue driver, making up a massive 76% of the total haul. Still, the value within that DRAM is what's really moving the needle on profitability.

The real story in 2025 is the explosive growth in high-value, AI-centric memory products. These are the premium components that command better pricing and drive margin expansion across the board.

• High-Value AI Products (HBM, high-capacity DIMMs) revenue of $10 billion in FY2025.
• This $10 billion figure represents a five-fold increase compared to the same period last year.
• The Cloud Memory Business Unit (CMBU) delivered record Q4 revenue of $4.54 billion.

Because these advanced products are so critical for AI training and inference, they bring in significantly better returns. To be fair, this product mix shift is why the overall Data Center business segment gross margins hit 52% in FY2025. That margin is a huge indicator of the revenue quality.

Beyond selling physical chips, Micron Technology, Inc. also generates income from intangible assets, though this is a smaller component of the overall revenue picture.

• Licensing of intellectual property and technology.

While the specific dollar amount for licensing isn't explicitly called out as a primary revenue stream in the same way as DRAM/NAND, the financial statements do reflect activity, such as recorded patent license charges in prior periods, indicating this stream is part of the operational structure.

The performance of the most profitable segment underscores the revenue strategy:

Finance: draft 13-week cash view by Friday.