Safe Harbor. August 29, Micron Technology, Inc. 2

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2 Safe Harbor During the course of this meeting, we may make projections or other forward-looking statements regarding future events or the future financial performance of the Company and the industry. We wish to caution you that such statements are predictions and that actual events or results may differ materially. We refer you to the documents the Company files on a consolidated basis from time to time with Securities and Exchange Commission, specifically the Company s most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause the actual results for the Company on a consolidated basis to differ materially from those contained in our projections or forward-looking statements. These certain factors can be found at Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking statements after the date of the presentation to conform these statements to actual results Micron Technology, Inc. 2

3 2011 Micron Summer Analyst Conference Steve Appleton Chairman and CEO 2011 Micron Technology, Inc. All rights reserved. Products are warranted only to meet Micron s production data sheet specifications. Information, products, and/or specifications are subject to change without notice. All information is provided on an AS IS basis without warranties of any kind. Dates are estimates only. Drawings are not to scale. Micron and the Micron logo are trademarks of Micron Technology, Inc. All other trademarks are the property of their respective owners Micron Technology, Inc. 3

4 Micron Has Emerged as an Industry Leader Recognized need for strategic change (shifted resources to focus on NAND) Leveraged technology expertise (organic and joint development agreements) Efficient capital deployment (cost effective M&A and partnerships) Product portfolio expansion (most comprehensive in the industry) Managed balance sheet to participate in industry consolidation TI Toshiba DRAM IMFT Lexar Nanya/MeiYa Numonyx Inotera * Analyst Consensus Estimates for Micron Technology, Inc. 4

5 % of Micron Total Revenue End Market Revenue Diversification 100% 4% 5% 7% 8% 90% 80% 9% 11% 12% 14% End Applications 70% 23% 18% 13% 12% AIMM 60% 50% 26% 26% 17% 16% Networking & Storage Server Consumer 40% 5% 6% 21% 28% Mobile 30% 20% 10% 33% 34% 29% 21% Personal Systems 0% FY08 FY09 FQ4'10 FQ4'11e Source: Micron (Includes DRAM, NAND, and NOR; NOR does not include purchase accounting adjustments) 2011 Micron Technology, Inc. 5

6 $B DRAM vs NAND Market Development $30 DRAM Revenue: NAND Revenue: E $25 $20 $15 $10 $5 $ Year Source: Gartner 2Q Micron Technology, Inc. 6

7 GB (M) NAND in New Applications Drives Significant Bit Growth NAND Bit CAGR Tablets 115% SSD 117% Total NAND Bit CAGR: 68% MP3/PMP USB DSC/VIDEO 27% 51% 39% 50.0 Mobile 61% 25.0 PC/Comp (Non-SSD) Embedded, AIMM % 67% Source: Gartner 2Q11; Cards included in Mobile and DSC 2011 Micron Technology, Inc. 7

8 % of Micron Total Revenues Revenue Diversification of Memory Technologies 100% DRAM NAND Imager/Other NOR 11% 11% 16% 16% 80% 4% 6% 60% 35% 39% 30% 40% 40% 20% 54% 50% 50% 38% 0% FY08 FY09 FQ4'10 FQ4'11e Source: Micron 2011 Micron Technology, Inc. 8

9 Increased Market Focus and Customer Engagement Chairman & CEO President & COO DRAM Solutions NAND Solutions Embedded Solutions Wireless Solutions Sales DRAM sold to: NAND sold to: DRAM, NAND, & NOR sold to: DRAM, NAND, & NOR sold to: Operations and Supply Chain R&D (Memory Architecture, Process R&D, Engineering) Procurement PC Consumer Electronics Networking Server Data Storage Personal Music Players Foundry sales to Intel (IMFT/IMFS) Automotive Industrial NAND & NOR sold to: Consumer Electronics Networking & Storage PC, Server Mobile devices Corp. Dev., Finance, HR, Integration, Legal 2011 Micron Technology, Inc. 9

10 NAND Solutions Group Glen Hawk Vice President 2011 Micron Technology, Inc. 10

11 2011 Micron Technology, Inc. 11

12 Tablet NAND Consumption 54.6 billion GBs Source: Micron 2011 Micron Technology, Inc. 12

13 SSD Consumers Third-party Manufacturers SSD & NAND Companies 2011 Micron Technology, Inc. 13

14 Total Units Sold (K) Aggressively Growing SSD Market Share FQ4 10 FQ1 11 FQ2 11 FQ3 11 FQ4 11e 2011 Micron Technology, Inc. 14

15 SSD Revenue ($B) 1GB EU SSD ASP 1GB EU SSD Shipments (M) Enterprise Commands Significant ASP Upside Enterprise PC Enterprise SSD PC SSD 14,000 $25 12,000 10,000 $ ,000 6,000 $20 4,000 2, $15 Enterprise PC $5.0 $10 $9.12 $4.0 $3.0 $5.91 $2.0 $1.0 $ $5 $0 $3.93 $2.47 $2.77 $2.01 $1.98 $1.53 $1.47 $1.01 $0.69 $0.50 $ Source: IDC 2Q Micron Technology, Inc. 15

16 Client Enterprise Growing SSD Portfolio P320h PCIe SLC Gen2 TBA PCIe MLC Gen2 TBA PCIe SLC & MLC Gen3 TBA SAS MLC 6 Gb/s & 12Gb/s TBA SAS MLC 12 Gb/s P300 SATA SLC 6 Gb/s P400e SATA MLC 6 Gb/s TBA SATA MLC 6 Gb/s TBA SATA Self-Encrypting TBA SATA Self-Encrypting C300 SATA MLC 6 Gb/s C400 SATA MLC 6 Gb/s TBA SATA MLC 6Gb/s TBA msata TBA msata Existing New this year Future 34nm 25nm 20nm 2011 Micron Technology, Inc. 16

17 Micron s SSD PCIe Solution: P320h Key Applications Video on demand Data analytics Cloud computing High Performance IOPs: 750K read; 340K write 3GB/s sustained throughput Low latency 17us to 50us Micron s P320h Enterprise-class SSD Runs Circles Around the Competition Capacities 350GB & 700GB 2011 Micron Technology, Inc. 17

18 Performance Benchmarking Steady state is the state that vendors should be reporting their performance from, in which all performance variability has died away from the SSD. Micron is an example of a company that does this. -- Storage Switzerland 2011 Micron Technology, Inc. 18

19 IOPs P320h Performance vs Competition 800, , , , , , , ,000 0 Random Read Random Write Based on publicly available information 2011 Micron Technology, Inc. 19

20 Historical Opportunities Moving Up the Value Chain (Micron NSG Revenue Mix) 100% 80% 60% 40% 20% Enterprise SSD Compute Client SSD USB & Cards Channel Emerging Opportunities 0% OEM Micron Technology, Inc. 20

21 NAND Solutions Group A technology leader, delivering fully integrated storage solutions for customers Rich and growing product portfolio to accommodate storage trends Well-positioned to address emerging opportunities in flash storage 2011 Micron Technology, Inc. 21

22 Embedded Solutions Group Tom Eby Vice President 2011 Micron Technology, Inc. 22

23 Embedded Solutions Group Focused on the unique needs of the embedded markets Segment Diversity Technology Diversity Consumer Network & Storage Personal Systems & Server Automotive IMM* 2012 $7.8B Opportunity DRAM NAND NOR Customer Diversity Customers Top 50 Customers Sources: isuppli, Micron *IMM: Industrial, Multi-markets 2011 Micron Technology, Inc. 23

24 $B Embedded Market Opportunity $9 $6 $3 $ Automotive IMM Networking and Storage Consumer Personal Systems & Server 2011 Micron Technology, Inc. 24

25 Automotive: Unique Requirements T0 T + 1 Yrs T + 2 Yrs T Yrs T + 9 Yrs+ Specify Stringent technical and quality specs Product eligibility Qualify Customer and OEM qualification cycles Intro and Ramp Safe launch assurance Maturity Continuous quality improvement programs Stable, reliable product supply from launch through end of life End of Life Flexible, adaptable, according to customer needs 2012 Opportunity Vehicles Produced WW: 80 million Memory TAM: $960M Memory BOM: ~$12 / vehicle Memory CAGR ( 12-15): >8% Margin Opportunity: High 2011 Micron Technology, Inc. 25

26 2011 Micron Technology, Inc. 26

27 Managed NAND Grows 34nm NAND Leveraging Micron NAND leadership Ensuring stability for embedded customers Controller 25nm NAND 2xnm NAND 2011 Micron Technology, Inc. 27

28 $M Technology Leadership in Serial NOR Growing Opportunity for High Density SPI $1,500 $1, Mb SPI $500 <128Mb SPI $ Serial Industry Leadership on 65nm New! Micron N25Q SPI NOR 256Mb-1Gb Only vendor in the industry to offer 32Mb-1Gb densities on 65nm First monolithic 256Mb SPI NOR in the industry 2011 Micron Technology, Inc. 28

29 Revenue Fab Depreciation % of Spending Longevity Support for Embedded Leading Edge Products Initial Ramp NSG: Storage, Removable, PMP Maximizes efficient use of Micron capital assets Example: Micron 34nm NAND Revenue Mainstream Products ESG: Consumer, PC NSG: Storage, SSD WSG: Smart Phones 100% Legacy Products Long Lifecycles ESG: Automotive, IMM, Networking Year ESG Revenue WSG Revenue NSG Revenue Fab Depreciation 0% ESG maximizes Micron s strength in mature businesses ESG optimizes Micron s capital investment 2011 Micron Technology, Inc. 29

30 Embedded Solutions Group Embedded is a high margin, stable, high opportunity business for Micron Embedded will take advantage of growth in managed NAND and high density Serial NOR with industry leading offerings Embedded capitalizes on high margin legacy businesses and optimizes Micron s capital assets 2011 Micron Technology, Inc. 30

31 Wireless Solutions Group Mario Licciardello Vice President 2011 Micron Technology, Inc. 31

32 Macro Trends Shaping Mobile Market Convergence Mobility, Connectivity and Computing convergence Growing demand for storage Vertical Integration Key Facts 2.8B units by 2015 Smartphones/Tablets 20% CAGR Other segments ~flat Consumerization Usage blurring between Personal & Work devices Complementary, not alternative usage of productivity and personal equipment Increasing penetration of smartphones and tablets in the office environment 2011 Micron Technology, Inc. 32

33 Million Units GB/Handset $M ASP/Handset Mobile Market: Growth Opportunity Wireless Market Growth (Mu) Wireless Memory TAM ($M) 3, $25,000 $60.0 2, $20,000 Tablet ASP $48.0 2, $15,000 $36.0 1, , $10,000 Smartphone ASP $ $5,000 $ $0 Feature Phone ASP $ Low-end Featured SmartPhone Tablet* GB/Handset Tablet* SmartPhone Featured Low-end 650M unit growth by 2015 Average memory content doubling every 18 months Memory TAM ~doubling by 2015 to $23B Value of memory content in Handsets increasing Source: Micron * 2011 Micron Technology, Inc. 33

34 Carrier OEM Chipset O/S Mobile Market Complexity Creates Opportunity PC Ecosystem: Mature & Stable Mobile Ecosystem: Exploding, Transforming and Highly Fragmented 2011 Micron Technology, Inc. 34

35 Multiple Players Impacting Demands on Memory Content Op. System Chipset OEM Carrier Density requirements PoP specifications Packaging requirements Density requirements Performance / bandwidth Speed Signal integrity Thermal Power consumption Preloaded content & image Power specifications Performance Differentiation 2011 Micron Technology, Inc. 35

36 Device Complexity: It s More than a Phone HTC Thunderbolt LTE Baseband Processor 1Gb SLC NAND 512 Mb LP-DDR Baseband + Application Processor 8 GB e.mmc 6 Gb LP-DDR2 Nokia C1-01 Baseband Processor 512 Mb NOR 64 Mb PSRAM Source: Micron Technology, Inc. 36

37 Micron is Well Positioned for Dynamic Trends Product Breadth O/S Chipset Partnership Strength Users OEM Technology Leadership 2011 Micron Technology, Inc. 37

38 Design Wins (past 6 months) ebooks: 3 Tablets: 9 Smart Phones: 190 Significant design wins with all 10 of the top handset manufacturers! 2011 Micron Technology, Inc. 38

39 Wireless Solutions Group Micron well-positioned to win in Wireless Micron memory present in more than: 550 million phones in smartphone models Leverage and win with Full range of optimized memory solutions Technology leadership Strong eco-system relationships Leading next generation technologies and standards (PCM, UFS, etc) 2011 Micron Technology, Inc. 39

40 DRAM Solutions Group Brian Shirley Vice President 2011 Micron Technology, Inc. 40

41 DSG Solutions: From Core to Home 2011 Micron Technology, Inc. 41

42 DRAM Solutions Group - DSG Server Networking & Storage Graphics & Consumer Personal Computing Cloud computing growing 2x faster than traditional segments Continued high-capex to serve insatiable bandwidth and storage demand Visual enhancements are driving increased DRAM needs Sandy Bridge integrates GPU on to CPU, pushing up main memory needs Virtualization and more cores per CPU drive higher memory content High-end routers/switches running past traditional DRAM limits New game console planning underway with unparalleled speed needs Fast growth of Thin & Light NBs with focus on power and footprint DDR3Lm Datacenter providers move to direct solutions model due to scale Increased focus on STB and CPE with legacy products on 50nm/300mm node Speed requirements increasing to 2Gbps + Tablets using DDR2 today, soon DDR3 and early DDR4 due to power Increasing demand for high density, high speed, low power DRAM solutions: Micron s DRAM portfolio drives the world s infrastructure 2011 Micron Technology, Inc. 42

43 Driving new Solutions for the Cloud IT Infrastructure is Changing Driving New Business Models Strongest growth segment with increasing share of Compute and Storage requirements Driven by Web 2.0 and internet platforms, enabled by extreme connectivity The cloud is considered a cost center, driving efforts to reduce total cost of ownership Micron Cloud Product Line LRDIMM Higher Capacity 3D Stacking Lower Power x DIMMs Flexible Cost Hybrid Memory Cube Extreme Performance Micron s Cloud Products maximize ROI for Datacenter Applications 2011 Micron Technology, Inc. 43

44 Leading with Higher Performance: RLDRAM3 RLDRAM3: The best low-latency DRAM gets better Unprecedented performance for high-end networking Comparable to SRAM access time at higher bandwidth and superior cost & density Strong support at target customers and enablers RLDRAM3 Enables new Performance Records Industry s 1 st 400G Network Processor from Alcatel- Lucent utilizes RLDRAM3 FPGA Reference Platforms from Xilinx and Altera 2 nd source enabling on track 2011 Micron Technology, Inc. 44

45 Systems 80% 60% Thin/Light & Tablet Price Leading in Personal Systems: Thin & Light Market Trend Price vs. Power Savings 100% 75% Tablet LPDDR2 LPDDR3 50% Netbook Notebook Ultrabook DDR3Lm DDR4m 25% Desktop DDR3 DDR4 0% Source: Gartner, Intel, Micron Power Saving DRAM Solutions: DDR3Lm / DDR4m Thin & Light drives future DRAM requirements DDR3Lm / DDR4m products optimized for new applications Ultrabook and Tablet Power saving to extend battery life (stand-by / IDD6) High density solution for small from factors (DDP / x32) 2011 Micron Technology, Inc. 45

46 Average MB/Console Focus on Dedicated Consumer Applications Average MB/Box DRAM content increase in Game Consoles DRAM content increase in DTV 4,000 Current Generation (PS3, Wii, Xbox360) Next Generation 1,000.0 Increased Resolution New Features 3, ,000 1, Source: Gartner, Micron Marketing Source: Gartner Significant DRAM content increase with new Game Console generation launching now New features and integration of other functionality (e.g. 3D, Internet) will continue DRAM content growth in DTV DRAM Solutions for Game Consoles & DTV Game Consoles and DTV need cost efficient, high performance DRAM Micron s portfolio of high-speed DRAM (DDR3, DDR4) addresses these requirements at competitive costs 2011 Micron Technology, Inc. 46

47 Leadership Through Improved Power: 30nm 2Gb Lowest Measured 3xnm 2Gb Power Operating Current (ma) Micron 30 nm 2Gb Competitor 1 3xnm 2Gb Competitor 2 3xnm 2Gb Idd Idd Idd2N Idd3N Idd4R Idd4W Idd5B Idd6ET Idd ma - milliamps Lowest Power Highest Power Power consumption (including cooling) makes up the largest portion of the operating expenses for Data Centers (Idd4, Idd7) Thin & Light space requires low power for extended battery life (Idd6) 2011 Micron Technology, Inc. 47

48 Leading with New Innovations: HMC Revolutionary Approach to Break Through the Memory Wall Evolutionary DRAM roadmaps hit limitations of bandwidth and power efficiency Micron introduces a new class of memory: Hybrid Memory Cube Unique combination of DRAMs on Logic smashes through the wall Key Features and Roll-Out How did we do it? Micron-designed logic controller High speed link to CPU Massively parallel Through Silicon Via connection to DRAM TSV connections Unparalleled performance: Up to 20X the bandwidth of a full DDR3 DIMM Using a 10th of the power per bit Occupying an 8th of the space of an RDIMM Targeting high performance computing and networking, eventually migrating into computing and consumer Full silicon prototypes in silicon TODAY 2011 Micron Technology, Inc. 48

49 Hybrid Memory Cube Timeline ES 2CQ GB/s 160 GB/s ES 1CQ13 Generation 2 Generation 3 **near memory solution Generation 2 **far memory solution 128 GB/s Demonstrating Now Generation 1 512MB 2/4GB 4/8GB **Technology Demonstrator Market Adoption Vehicle 1 Gb DRAM array 4 8Gb/s Stack on Substrate 4 Gb DRAM array Gb/s Stack on Substrate 8 Gb DRAM array Gb/s CSP or Substrate 2011 Micron Technology, Inc. 49

50 DRAM Solutions Group Focus on segments driven by exploding bandwidth and computing needs Broad portfolio focused on optimal solutions across performance, power, and density Leadership in next generation solutions, driving enhanced margin opportunities 2011 Micron Technology, Inc. 50

51 Efficient Operating Model Mark Durcan President and COO 2011 Micron Technology, Inc. 51

52 Increased Market Focus and Customer Engagement Chairman & CEO President & COO DRAM Solutions NAND Solutions Embedded Solutions Wireless Solutions Sales DRAM sold to: NAND sold to: DRAM, NAND, & NOR sold to: DRAM, NAND, & NOR sold to: Operations and Supply Chain R&D (Memory Architecture, Process R&D, Engineering) Procurement PC Consumer Electronics Networking Server Data Storage Personal Music Players Foundry sales to Intel (IMFT/IMFS) Automotive Industrial NAND & NOR sold to: Consumer Electronics Networking & Storage PC, Server Mobile devices Corp. Dev., Finance, HR, Integration, Legal 2011 Micron Technology, Inc. 52

53 Advanced Process Technology 1Xnm Lithography EUV and immersion extension Novel Materials Development Advanced chemistry development Unique analysis capabilities 15nm Lithography Expanded etch, films and wet process capability Low damage, low defect processing Conformal, low temperature films High aspect ratio and non-volatile etching Nano-Laminates Elemental Analysis 2011 Micron Technology, Inc. 53

54 Enabling Future Memory Technologies PCM (Phase Change Memory) Storage Class Memory NOR Replacement Magnetic STTRAM DRAM Replacement STTRAM Capacitor-less DRAM DRAM Replacement PCM RRAM (Resistive RAM) Storage Class Memory NAND Replacement RRAM Capacitor-less DRAM 2011 Micron Technology, Inc. 54

55 Investing for the Future Industry Leading Advanced Memory Products and Manufacturing Capabilities 2011 Micron Technology, Inc. 55

56 IM Flash Singapore 2011 Micron Technology, Inc. 56

57 Wafer Outs Per Month (300mm EU) IM Flash Singapore Update 120,000 Today 100,000 80,000 Additional capacity is dependent on market conditions 60,000 40, nm 20, nm Source: Micron LPI WW Micron Technology, Inc. 57

58 Wafer Start Per Month Inotera Update 140,000 Today 120, ,000 80,000 Trench 60,000 40, nm Additional 30nm transition is dependent on market conditions 20, nm 30 nm - Source: Company Data Micron Technology, Inc. 58

59 Maturing 30nm DRAM Functional Yield 2011 Micron Technology, Inc. 59

60 Wafer Outs Per Month (300mm EU) Micron Total Capacity 450,000 Today 400, , nm (NOR) 300,000 NOR 250, nm (NAND) 25 nm (NAND) 200, nm (NAND) 150, , nm (DRAM) 50 nm (DRAM) 50,000 40nm (DRAM) - 30nm (DRAM) Includes 200mm Capacity and Inotera Capacity 2011 Micron Technology, Inc. 60

61 Memory Leadership Steve Appleton Chairman and CEO 2011 Micron Technology, Inc. 61

62 Cash to ST Debt Micron s Cash to ST Debt Has Improved While Industry Continues to Weaken Micron Cash/ST Debt Industry Cash/ST Debt 14.0x 12.0x 10.0x 8.0x 6.0x 4.0x 2.0x 0.0x H1 Cash to ST Debt = Cash and Equivalents / (ST Borrowings + Current Portion of ST Debt); Industry includes Hynix, Elpida, Powerchip, ProMos, Nanya, and Inotera. Source: Capital IQ 2011 Micron Technology, Inc. 62

63 Millions of US$ Millions of US$ Industry s Strongest Balance Sheet $2,000 Net Cash Position 14.0x Cash to Short-Term Debt $1, x 13.0x $0 $823 -$ x -$1, x -$1,641 -$1,905 -$1,962 -$2, x -$3,000 -$3, x -$3,786 -$3,889 -$4, x -$5, x 0.6x 0.4x 0.4x 0.2x 0.2x 0.1x 0.1x Micron FQ3-11 Winbond CQ2-11 Powerchip CQ1-11 ProMOS CQ1-11 Inotera CQ2-11 Nanya CQ2-11 Elpida CQ2-11 Hynix CQ2-11 Micron FQ3-11 Hynix CQ2-11 Winbond CQ2-11 Elpida CQ2-11 Powerchip CQ1-11 Inotera CQ2-11 ProMOS CQ1-11 Nanya CQ2-11 $6,000 Total Debt 100% Debt to Capital Ratio $5,000 $4,000 $3,000 $3,281 $4,805 $5,460 90% 80% 70% 60% 50% 53% 59% 66% 86% 93% $2,000 $1,000 $1,572 $1,864 $1,985 $2,170 40% 30% 20% 33% 42% $0 $613 10% 0% 14% Winbond CQ2-11 Micron FQ3-11 Powerchip CQ2-11 ProMOS CQ1-11 Inotera CQ2-11 Nanya CQ2-11 Elpida CQ2-11 Hynix CQ2-11 Micron FQ3-11 Winbond CQ2-11 Hynix CQ2-11 Elpida CQ2-11 Inotera CQ2-11 Powerchip CQ1-11 Nanya CQ2-11 ProMOS CQ1-11 Source: Publicly Available Competitor Data, Micron 2011 Micron Technology, Inc. 63

64 Gross Margin % Micron Has Changed its Business Model to Enable Industry Leading Gross Margin Throughout Market Cycles Micron Competitors 60% Throughout the Last Cycle, Micron has Outperformed Market 40% 20% 0% -20% -40% -60% -80% FQ1-06 FQ1-07 FQ1-08 FQ1-09 FQ1-10 FQ1-11 * All competitor data based on closest calendar quarter, Micron data based on fiscal quarters Source: Company Data, Micron Market: Elpida, Hynix, Inotera, Nanya, Powerchip, ProMOS, Winbond 2011 Micron Technology, Inc. 64

65 Gross Margin Gross Margins (Micron vs. Market) Micron Competitors 50% 40% 33% 37% 31% 30% 20% 10% 10% 13% 25% 26% 29% 32% 27% 23% 19% 22% 0% 6% 5% 8% -2% -10% -20% -30% -30% -40% FQ3-09 FQ4-09 FQ1-10 FQ2-10 FQ3-10 FQ4-10 FQ1-11 FQ2-11 FQ3-11 * Market data based on closest calendar quarter, Micron data based on fiscal quarters Source: Company Data, Micron Market: Elpida, Hynix, Inotera, Nanya, Powerchip, ProMOS, Winbond 2011 Micron Technology, Inc. 65

66 Operating Cash Flow (M US$) Micron has Strong Operating Cash Flow Micron Competitors $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 -$200 -$400 FQ1-06 FQ1-07 FQ1-08 FQ1-09 FQ1-10 FQ1-11 * Competitor data based on closest calendar quarter; Micron data based on fiscal quarters Source: Company Data, Micron Market: Elpida, Hynix, Inotera, Nanya, Powerchip, ProMOS, Winbond Based on simple average of competitors OCF 2011 Micron Technology, Inc. 66

67 $ per Gb DRAM ASPs Relative to Industry Manufacturing Cash Cost DRAM ASP s Historically Hit Bottom as they Approach Cash Cost Mfg Cash Cost Range Avg Mfg Cash Cost/Gb DDR2/DDR3 Avg Spot C1Q07 C2Q07 C3Q07 C4Q07 C1Q08 C2Q08 C3Q08 C4Q08 C1Q09 C2Q09 C3Q09 C4Q09 C1Q10 C2Q10 C3Q10 C4Q10 C1Q11 C2Q11 C3Q11 C4Q11 Source: DRAM Exchange 8/15/2011, lowest DDR2 or DDR3 Average shown. Competitor Mfg Cash Cost estimated by Micron Finance Strategy Team Micron Technology, Inc. 67

68 Millions of $US Memory Industry CapEx $40,000 DRAM NAND NOR $35,000 1,950 $30,000 11,783 $25,000 2, $20,000 8,707 1, ,856 7, ,780 $15,000 $10,000 15,862 18, ,371 16,395 21,843 7, ,276 $5,000 3,870 7,730 12,962 6,583 6,229 11,486 6,533 4,368 6,066 11,527 11,669 11,752 2,669 5,351 13,465 8,661 11,593 $ e 2012e Source: Gartner 2Q Micron Technology, Inc. 68

69 300mm Eq WPM (M) Combined Industry DRAM Wafer Capacity May Never Reach Levels Seen in ,600 1,400 1,200 1, Source: Micron Wafer Capacity Model C1Q05 C1Q06 C1Q07 C1Q08 C1Q09 C1Q10 C1Q11 C1Q12 C1Q Micron Technology, Inc. 69

70 300mm Eq WPM (M) Worldwide NAND Wafer Capacity 1,600 NAND Wafer Production Projected to Exceed DRAM for the 1 st Time 1,400 1,200 1, Source: Micron Wafer Capacity Model 0 C1Q05 C1Q06 C1Q07 C1Q08 C1Q09 C1Q10 C1Q11 C1Q12 C1Q Micron Technology, Inc. 70

71 DRAM Bit Supply Growth DRAM Industry Bit Growth Volatility is Stabilizing as Industry Consolidates Into Four Major Producers 90% Utilization Capacity Technology Supply Growth 87% 70% 37% 63% 50% 52% 45% 48% 49% 50% 25% 30% 47% 22% 31% 49% 45% 10% 26% 1% 3% 36% 20% -7% -8% 0% 14% 2% -3% 2% 2% -10% -6% -30% Sources: Gartner, IDC, isuppli, Merrill Lynch, and Credit Suisse from ; Average of Gartner, IDC, and isuppli , Micron Forecast, Finance Strategy Group drivers split 2011 Micron Technology, Inc. 71

72 NAND Bit Supply Growth NAND Industry Bit Growth has Stabilized With Supply and Demand in Balance Utilization Capacity Technology Supply Growth 250% 200% 202% 173% 150% 119% 128% 110% 100% 101% 70% 78% 82% 50% 0% 46% 59% 82% 55% 66% 64% 51% 32% 9% 12% 22% -5% 2% -1% -5% 6% 1% -50% Sources: Gartner, IDC, isuppli, Merrill Lynch, and Credit Suisse from ; Average of Gartner, IDC, and isuppli , Finance Strategy Group drivers split 2011 Micron Technology, Inc. 72

73 Micron s Leading Competitive Position DRAM + NAND + NOR Developers Samsung LTM Memory Revenue (% of Group Total) 36% Hynix 17% DRAM + NAND Developers Micron 15% Single Memory Developers Toshiba 12% DRAM NAND NOR Elpida 9% Powerchip 3% JV Producers Producers Nanya 3% Spansion 2% Winbond 2% ProMOS 1% Macronix 1% 0% 10% 20% 30% 40% Source: Company Data, Micron Note: Micron Includes NAND sold to Intel from IM Flash; data from FQ4 10 FQ3 11 Competitors data from CQ3 10 CQ Micron Technology, Inc. 73

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