AmCham Global Executive Insights: Taiwan's Current and Future Role in the Semiconductor Memory...
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Transcript of AmCham Global Executive Insights: Taiwan's Current and Future Role in the Semiconductor Memory...
© 2015 Micron Technology, Inc. All rights reserved. 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.
Statements regarding products, including regarding their features, availability, functionality, or compatibility,
are provided for informational purposes only and do not modify the warranty, if any, applicable to any
product. Drawings may not be to scale. Micron, the Micron logo, and all other Micron trademarks are the
property of Micron Technology, Inc. All other trademarks are the property of their respective owners.
Update on Micron in Taiwan
© 2016 Micron Technology, Inc. All rights reserved. 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.
Statements regarding products, including regarding their features, availability, functionality, or compatibility,
are provided for informational purposes only and do not modify the warranty, if any, applicable to any
product. Drawings may not be to scale. Micron, the Micron logo, and all other Micron trademarks are the
property of Micron Technology, Inc. All other trademarks are the property of their respective owners.
Mark Durcan
Chief Executive Officer
© 2016 Micron Technology, Inc.
Micron by the Numbers
37 Years strong in
2O Countries with 13 Manufacturing and R&D sites,
3O,OOO+ Team Members and
Net Sales in 2015 of
$16,1OO,OOO,OOO | March 10, 20162
© 2016 Micron Technology, Inc.
Global Manufacturing Scale2
Lehi, Utah USA Manassas, VA USA
3
13
2
4
5
6
7
8
9
10
11
4
Agrate, Italy
Hiroshima, Japan
10
Akita, Japan
11
5
Muar, Malaysia
9
Xian, China
7
Taiwan (Inotera)
6
Singapore
8
Taiwan
1
Boise, Idaho USA
| March 10, 20163
© 2016 Micron Technology, Inc.
We offer a diversified product mixSERVING A BROAD SET OF CUSTOMER APPLICATIONS
4 | March 10, 2016
5%
13%
3%
21%
8%
5%
6%
15%
23%
1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY15
% o
f M
icro
n T
ota
l Re
ven
ue
EndApplication
Other
SSD Storage
Other Storage
AIMM
Mobile
Compute
Networking
Other Embedded
Server
Graphics
Evolution of the
Memory Industry
© 2016 Micron Technology, Inc.
Worldwide
semiconductor
market
$334B (-2% Y/Y)
Logic
$181B
-3% Y/Y
Discrete
$18B
-7% Y/Y
Analog
$21B
+2% Y/Y
Other
$36B
+3% Y/YNon-PC
$35B
PC
$10B
NAND
$31B
NOR
$2B
DRAM
$45B-2% Y/Y
Source: Gartner 4Q15 and Micron 1Memory includes DRAM, NAND, and NOR
2015 Semiconductor Market
| March 10, 20166
Non-Volatile
$33B+3% Y/Y
Memory1
$78B
-1% Y/Y
© 2016 Micron Technology, Inc.
0%
50%
100%
2000 2015 2019
Auto / Embedded
Server & Networking
Mobile
PC & Graphics
Diversifying Memory Segments
Memory $
per Device1
2016-2019
Bit CAGR est.
Server & Storage
~$1,000DRAM: ~40%
NAND: ~60%
Smartphone
~$25DRAM: ~25%
NAND: ~40%
PC (with SSD)
~$100DRAM: ~10%
NAND: ~50%
Connected Autos
~$90+DRAM: ~40%
NAND: ~30%
Server & Storage: Enterprise & Cloud Server (DRAM), Enterprise & Datacenter SSD (NAND)
Smartphone: High-end Smartphones
PC: PCs with Solid State Drives (SSD)
Connected Autos: ADAS, Infotainment, other memory in high-end cellular-connected vehicles
Memory Content in Selected Segments, 2015
0%
50%
100%
2005 2015 2019
SSD
Mobile
MP3 & Consumer
USB/Cards & Other
PC DRAM bits growing from ~70% in 2000
to less than 20% in 2019
DRAM Industry Bit Mix
1DRAM and NAND only
Mobile and SSD growth from less than 5% in
2005 to over 90% in 2019
NAND Industry Bit Mix
| March 10, 20167
Source: Micron and Industry Analysts
© 2016 Micron Technology, Inc.
0
50
100
150
200
250
300
350
2015 2016 2017 2018 2019
NAND Industry Bit Demand (B GB EU)
Growing and Diversifying Memory Demand
Tablets contain a mix of mobile DRAM, standard DRAM, and reduced-power solutions. Upgrade modules
included with PC.Source: Micron and Industry Analysts
| March 10, 20168
0
20
40
60
80
100
120
140
160
2015 2016 2017 2018 2019
DRAM Industry Bit Demand (B Gb EU)
Tablet
PC
Handset
AIMM
Consumer &
Graphics
Server/Storage/
Networking
Tablet
Enterprise
SSD
Other
Removable
Storage
Handset
Client SSD
Consumer
Datacenter
SSD
© 2016 Micron Technology, Inc.
-20%
0%
20%
40%
60%
80%
100%
2011 2012 2013 2014 2015 2016 2017
Capacity Technology Throughput Supply Growth
-10%
0%
10%
20%
30%
40%
50%
2011 2012 2013 2014 2015 2016 2017
Capacity Technology Throughput Supply Growth
Industry Supply Outlook
Source: Micron and Industry Analysts
| March 10, 20169
DRAM technology-driven supply growth has been
slowing, with trend expected to continue
DRAM Industry Bit Supply Growth NAND Industry Bit Supply Growth
NAND supply growth slowing this year; demand growing
and bifurcating into mobile and storage applications
NAND supply growth expected to be ROIC-dependent
3D expecting to spur more growth at
expense of throughput
Technology-driven growth slows due to
scaling limits and market shift to value-add
solutions (e.g. mobile, DDR4, etc.)
© 2016 Micron Technology, Inc.
Semiconductor Memory RevenueGROWING IN TIME AND SHOWING LESS VOLATILITY
| March 10, 201610
Peak to
Trough Decline:
-57%-49%
-23%
-18%
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Memory Revenue ($B)
Source: Micron and Industry Analysts
© 2016 Micron Technology, Inc.
Micron’s Business is Evolving
Demand Fulfillment
Relationship
Demand Creation
Relationship
Value Added
Products
OEMs
Hyperscale
Channel
Strategic Partners
ODM
Solutions
for
Emerging
Applications
Verticals/Influencers– Financial
– Oil & Gas
– Automotive
– Media
– Telecom Service Providers
– Medical
– Government
Legacy
Component
Business
OEMs
| March 10, 201611
© 2016 Micron Technology, Inc.
Leading with new innovations: HMC
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 memory wall
Breaking through “memory wall”
Unparalleled performance
Provides 15X the bandwidth of a DDR3
module
Uses 70% less energy per bit than existing
memory technologies
Reduces the memory footprint by nearly
90% compared to today’s RDIMMs
Key applications
Data packet processing, data packet
buffering, and storage applications
Enterprise and computing applications
How did we do it?
Micron-designed logic controller
High speed link to CPU
Massively parallel “Through Silicon
Via” connection to DRAM
| March 10, 201612
© 2016 Micron Technology, Inc.
Leading with new innovations: 3D NANDHOW 3D NAND ENABLES INNOVATION
How did we do it?
We’re the first to employ floating gate cell
technology in 3D NAND—a proven cell technology
that enables better performance, quality, and
reliability. We stack 32 storage tiers to achieve the
highest-capacity NAND die available today: 256Gb
multilevel cell (MLC) and 384Gb triple-level cell (TLC)
3D NAND.
Our 3D NAND solutions bring significant
performance, power, and capacity advantages to
storage applications
Pack in More Capacity
Get 3 times the capacity of existing NAND
products—enough to enable 3.5TB gum stick-sized
SSDs or more than 10TB in standard 2.5-inch SSDs.
Boost Performance
Achieve significantly higher read/write bandwidth
and I/O speeds, as well as improved random read
performance, thanks to our 3D NAND’s fast 4K read
mode.
Save Power
Reduce power consumption significantly in standby
mode thanks to 3D NAND’s new sleep mode features
that cut power to inactive NAND die (even when
other die in the same package are active).
| March 10, 201613
© 2016 Micron Technology, Inc.
Leading with new innovations: 3D XPoint™ Memory
Combining the very best capabilities of existing
technologies, 3D XPoint has the potential to
dramatically transform computing architectures
FIRST NEW MEMORY CATEGORY IN DECADES
1000XFASTER
THAN NAND
1000XENDURANCE
OF NAND
10XDENSER
THAN CONVENTIONAL MEMORY
| March 10, 201614
© 2016 Micron Technology, Inc.
DRAM
NEW MEMORY A
Future Memory Technology OptionsROLE OF TAIWAN
15 | March 10, 2016
3D XPoint™ Roadmap Technology roadmap defined for multiple generations
Roadmap delivers improvements in cost/bit, performance and density
New memory options under development Performance driven (retention, speed, endurance)
Cost-focused memory
3D XPoint™ NAND
NEW MEMORY B
Highest Performance
Lowest Cost
StorageClass Memory
Importance of Taiwan
in Memory Manufacturing
© 2016 Micron Technology, Inc.
Update on Inotera Transaction
Rationale Exceptional talent
Simplifies operations
100% access to cash flow- Expected to be accretive to gross margin, EBITDA, EPS & free cash flow
immediately after close
- Expect average annual incremental free cash flow greater than $600M
Leading edge 20nm technology fully deployed by close
Update
Definitive documents signed; expected to close in July 2016
Subject to approval by 2/3 of Inotera shareholders - Micron and Formosa Group companies own ~65% of shares
~$4B of incremental cost to be financed as follows:- Approximately $2.5B Taiwan debt financing
- Approximately $500M cash on balance sheet
- Up to $1B equity financing at Micron’s discretion
PURCHASE PRICE: $30 NEW TAIWAN DOLLAR PER SHARE
17 | March 10, 2016
© 2016 Micron Technology, Inc.
Micron in TaiwanA STRONG PRESENCE
| March 10, 201618
A leading foreign investor and
employer in Taiwan
Strong semiconductor talent
Outstanding relations with both local
and national governments
Strong strategic partnerships
Great customer and supplier
relationships
Strategic University partnerships
Taichung: 300mm
fabrication facility
Taoyuan: 300mm
fabrication (Inotera)
Taipei: Sales and
technical support in
Taipei
Importance of Taiwan for Micron’s Success
Great talent pool
Cost competitive
Quality
Strong foundry ecosystem
Proximity to China
Broader electronic component / system manufacturer
Strong test and assembly infrastructure
Long-term energy costs