A：Micron's decision to add green capacity for NAND was prompted by their assessment that while DRAM required green wafer capacity for long-term demand trends, NAND could meet its needs through technology transitions. This decision was also influenced by continued space consumption for technology transitions, future technology advances, and the strategic move to consolidate more of their NAND R&D in Singapore to be closer to manufacturing. The drivers included in their decision were additional clean room space, market outlook, and confidence in their product portfolio.

A：No, the new site for the capacity expansion is not a greenfield site. It is an existing site where Micron is adding additional clean room capacity.

A：The robust demand for NAND is being driven by growth in the data center sector, particularly due to AI servers that use high amounts of high capacity and high performance SSDs. Micron's portfolio has performed exceptionally well, with the company being the first to market with Gen 6 SSDs that have seen tremendous demand, especially with Nvidia systems, which has not been able to meet fully. There has also been strong demand for high capacity SSDs, and Micron has introduced new products that are expected to further grow their share in the data center SSD market.

A：Micron plans to use the new capacity to continue growing its business with a focus on disciplined investing when it comes to CapEx (Capital Expenditures) going forward.

A：The new clean room capacity is not expected to provide a boost to Micron's NAND capacity until the second half of 2028, which indicates that over the medium term, NAND clean space will continue to be a challenge for the industry.

A：Micron does not provide specific price modeling, but they have observed that despite the increase in DRAM capacity due to new projects like the ones in Idaho and the acquired powerchip facility, the impact on pricing is expected to be towards the fiscal year of 2028. The reason is the continued demand growth, especially driven by AI across different market segments, and the fact that the increase in supply will not be meaningful until later in 2027 and into 2028. Consequently, they expect tight supply conditions to persist beyond 2026.

A：Industry bit shipments are expected to be constrained by supply, with the supply expected to grow in line with industry trends. This suggests that there may be some modest growth in both DRAM and NAND volumes, but it's limited by the existing supply constraints.

A：CXL is likely to be experimented with by some customers, and there is a robust demand in the market with a significant gap between supply and demand. Any available opportunity to deploy solutions at scale, like CXL, is expected to be utilized, though there are technical limitations and not all deployments will be successful.

A：The company views HPM and non-HPM allocations as strategic rather than tactical, necessary to provide customers with balanced product sets for AI systems. HPM pricing is set early in the year and provides stability and visibility. The company aims to work with customers to meet their business needs while also focusing on strategic product allocations that complement their business goals.

A：There are currently on-chip strim approaches in use, and while there has been talk about bonded strim, the company does not comment on customers' future directions for integrating SRAM. However, their main focus is on systems that are well-balanced and efficient, with growing usage of DRAM in AI systems.

A：The demand for data center SSDs has been affected by an increased focus on deployment through Kv cash, which has escalated the demand. Additionally, shortages in Hdds have also driven this demand. The overall NAND market is significantly undersupplied to the data center demand, which is continuing to grow.

A：The CapEx is still expected to be dominated by investments in DRAM and HBM, with the FY 26 CapEx outlook increased to over 25 billion from 20 billion previously, reflecting investment in new facilities and expansions. While construction costs are anticipated to double in FY 25-26, they will still represent a smaller portion of the CapEx compared to DRAM.

A：HBM is expected to continue to see content uplifts driven by the trends in AI, which require more reasoning capability, longer context windows, and more involvement with agents, multi-page, and orchestration. These requirements translate to increased need for DRAM capacity and bandwidth, which HBM effectively provides. There is a clear trend and customer demand for more HBM in AI systems and applications.

A：Micron has not provided a new long-term bit growth number but has mentioned in the past that the ranges for DRAM are in the high teens, and for NAND, it's in the 20% range. The supply constraints are due to HBM being part of these numbers, which is stressing the entire industry and Micron's capabilities to meet demand. These numbers are currently supply-limited rather than reflecting the true level of demand.

A：Micron is assessing various demand drivers and signals, including announcements from GTC this week. The availability of clean room capacity is constrained, with the Singapore greenfield facility not available until the end of 28. Micron is looking at the sustainability of current operations and the extent to which clean room constraints will impact production. They are also considering when they will be caught up with the necessary clean room capacity and the time it will take to transition tools into the new facility.

A：The timeline for equipment installations and orders will be nimble and able to adjust based on the evolving market demand, with the ability to align equipment installations accordingly.

A：New demand vectors include robotics and other emerging areas which are expected to be significant demand drivers. These factors, along with customer agreements and supply capabilities, are being assessed to understand when the supply may catch up with demand.

A：The projected CapEx growth is by 10 billion from 26 to 27, with an expectation that roughly half will be allocated to construction and half to equipment for announced projects. There will be lumpy spending patterns and a focus on maintaining stable bit share. The investment in the Tongle fab to add capacity is recent, and meaningful bits will not be available until fiscal 2028.

A：Gross margins are expected to be impacted by continued cost reductions and node transitions such as 1 Tom on DRAM and G 9 on NAND. The impact of startup costs for new facilities, such as ID1 and Tong Low, will be around 100 to 200 million per quarter starting in the next quarter or so, with a smaller impact of 50 basis points or less on revenue. Depreciation expenses will vary based on when production wafers are out and the useful life of the assets, with a long depreciation life for greenfield assets.

A：The company has been executing well on cost reductions and node transitions, with benefits such as efficiency and cost downs. The HBM performance is positive, with Hpm 3 E 12 and Hpm 4 continuing to execute well and having a faster yield ramp than previous models. The company has managed costs well in the face of geopolitical issues in the Middle East and minimal input disruptions, without seeing any significant supply risks or cost impacts.