8-KRegulation FDExhibits & Filings

MICRON TECHNOLOGY INC 8-K Report, Regulation FD Disclosure (Dec 3, 2014)

Filed December 3, 2014For Securities:MU

Summary

Micron Technology Inc. (MU) announced a significant expansion of its Singapore fabrication facility, adding approximately 255,000 square feet of clean room space. This strategic move is designed to enhance the company's capabilities for 3D NAND production and provide flexibility for future capacity adjustments and the development of other memory technologies. The expansion is a multi-year project with construction commencing in fiscal year 2015 and initial manufacturing output expected in fiscal year 2017. While the initial phase of design and construction in fiscal 2015 is projected to cost $50 million, the total anticipated investment over several years, starting in fiscal year 2016, is substantial at approximately $4 billion. Importantly, this projected capital expenditure for the expansion does not alter Micron's previously stated capital spending guidance for fiscal year 2015, which remains between $3.6 billion and $4 billion. Investors should note that the company's CEO will discuss this strategy further at the 18th Annual Credit Suisse Technology Conference, with the presentation available via webcast.

Key Highlights

  • 1Micron plans to expand its Singapore fabrication facility by adding 255,000 sq ft of clean room space.
  • 2The expansion aims to facilitate 3D NAND production and provide flexibility for future capacity needs and other memory technologies.
  • 3Construction is slated to begin in fiscal year 2015, with initial manufacturing output expected in fiscal year 2017.
  • 4The initial investment in fiscal year 2015 for design and construction is estimated at $50 million.
  • 5The total projected cost for the expansion is approximately $4 billion, to be incurred over several years starting in fiscal year 2016.
  • 6This expansion plan does not change Micron's fiscal year 2015 capital spending guidance of $3.6 billion to $4 billion.
  • 7CEO Mark Durcan will present further details on the company's technology and manufacturing strategy, including this expansion, at the Credit Suisse Technology Conference on December 3, 2014.

Frequently Asked Questions

The expansion is primarily to facilitate the efficient implementation of 3D NAND production at the Singapore facility. It will also provide the company with the flexibility to gradually add incremental capacity in response to market requirements and enable the production of storage class and other memory technologies.

The total anticipated cost for the expansion is approximately $4 billion, which is expected to be incurred over a number of years starting in fiscal year 2016. An initial $50 million is expected for design and construction in fiscal year 2015.

No, Micron states that its capital spending guidance for fiscal year 2015 remains unchanged at $3.6 billion to $4 billion, despite the planned expansion costs.

Construction is expected to begin in fiscal year 2015, with initial manufacturing output likely in fiscal year 2017.