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I am pleased to say I am joined now by the Micron CEO President and Chairman, Sanjay Morotra. Sanjay, it's so nice to see you, and thanks so much for joining us here on Bloomberg Television and Radio. We are here in Manassas, Virginia to mark the start of the one Alpha DRAM manufacturing in the United States for one of the most highly advanced and widely used memory chips. I know Micron has a commitment to onshore forty percent
of its DRAM manufacturing. Can you just give us a little bit of insight how does today help you with achieving that goal.
So, first of all, Tyler, thank you very much for having me on the show. In terms of what today means, it really means, as you noted, bringing the most advanced DDR for memory built with one Alpha technology, which is critical for industries like automotive, aerospace, defense, industrial networking. These are critical industries that powered America and by us bringing this technology from Asia into now manufacturing here, it will help us quadruple our production here at this site in Manassas.
For that DDR for memory, this is going to be huge for our customers in those key sectors. Memory today is absolutely key across all industries that have electronic systems, and Micron is of course investing in Boise, Idaho building our leading edge fab that's for leading age memory that goes into smartphones, PCs, servers, and that leading edge memory in Boise, Idaho will bring first wapers out middle of
next year and then ramp up from there on. We'll have a second fab in Boise, Idaho soon to follow that start first wafers by end of twenty twenty eight eight there and then we have production planned for Syracuse, New York area, where we will build over time a
mega cluster or four fabs. And you can see two hundred billion dollars of investments that Micron is making here in America to bring these long life cycle production that will be managed here in Manassas, Virginia, along with production in Boise, Idaho and Syracuse, New York, and that will bring Micron's total production over the course of about next ten years as we ramp up all these multiple fabs
to about forty percent of our production. By comparison, it is about ten percent today, and all of that ten percent comes from this site here in Manassas for Micron, and this will totally our investments, massive investments in long life cycle technology nodes as well as leading as technology nodes to serve these vast markets that really surging in
demand driven by AI. Micron is going to be bringing those investments that's semiconductive manufacturing and in the process create ninety thousand new jobs here in the US as well.
Well. On this point of demand and how this investment is seeking to help breach that growing demand, I'm wondering how long do you expect the shortage of memory chips to last? When can we expect an easing.
Of course, the demand for memory has really searched, and that is because of the importance and the value and the capability of memory that is really essential for all advanced systems. And yes, there is a shortage, but Micron is working hard to increase supply through these projects here in America here in Manassas, Virginia, Boise, and New York. And we see this shortage continuing beyond, well beyond twenty
twenty six timeframe. But the important thing is that Micron is working hard with our customers working also on the long term the supply agreements with our customers to really ensure that they can have predictability for supply, and of course Micron can have the confidence for the investments that we are really committing to here for the long haul.
Well. Historically, memory is a cyclical business, right periods of boom, periods of bus I'm wondering if a two hundred billion dollar investment here in the US signals perhaps more of a confidence that that demand, that high demand is going to be permanent, or are their concerns here that the industry could be overbuilding capacity.
You know, of course, what we are doing is building these fabs which are very long lead time items. As you can see in terms of what we are doing it Boise in New York, it really takes several years just to build construct the shell. How we equip that shell really very much depends on our greatest assessments of demand at a given time. So important thing is to have that preparedness to meet the market demand, and Memory has become a key enabler. It is a strategic asset
for our customers today. It is a strategic asset for AI across consumer as well as data center industries because without memory, you don't really have that intelligence that is critically important for the future roadmaps that our customers have, so memory is critical. Our investments, of course, will always
be managed with discipline. Today we are able to meet the demand of our key customers only about fifty percent to about two thirds in many cases, and it's really important that we of course bring up this supply with discipline and continue to really fuel the growing provide. Then this is served the necessary demand that is ahead.
Where are your biggest bottlenecks right now in the supply chain? And I'm wondering how labor fits into that picture, because a lot of the announcement here today was about boosting jobs here in the US.
As I mentioned earlier, I mean our investments will create ninety thousand new jobs. These are high paying jobs. Of course, Micron is very much focused on engaging with the communities, with the colleges and universities, with really local systems in
order to even support and advance apprenticeships. So we are very much focused on investing for the training and development of the workforce across the United States, particularly in the regions where Micron plans to have these fabs, and that is of course an important critical priority in terms of
the bottleneck. In terms of bringing up the supply, of course, it is the construction that is really long tent in the poll and as construction happens, then it is about bringing in the equipment and qualifying the lines, which also
takes some period of time. And that's why we see that meaningful new supply in the industry doesn't really start ramping until twenty twenty eight timeframe, because our Boise, Idaho fab will have first wave fas out middle of next year and subsequent fabs will have wafirs out later in the future as well.
Does it advantage you to be the only American company in this space working with the Trump administration in this way, I'm wondering if you could shed any light on that, and where does this position you against your largest competitors like Samsung, Skhiex when it comes to market share.
I'm very proud of Micron's team, and of course very proud that we are the only US memory manufacturer in memory today is absolutely critical for everything electronic system So yes, very proud, and of course our customers here in the US very much value our investments in the US. They value resilient, secure, supply chains that Micron is investing in to support their future growing requirements. We are very pleased
with the partnership, the engagement. We are very thankful to President Trump and his administration and his focus on bringing leading edge manufacturing here to America to support a wide range of our industries. And our partnership with the administration is strong. As you saw, I mean, Secretary Lutnik as well as Investor Greer made strong comments in support of
our investments today. We are very thankful to President Trump for the support, and we are very much focused on making our supply grow so that we can meet our customers requirements, but have it grow in a discipline manner, focusing on of course always demand and supply, of course accelerating the timeline for our investments as much as possible.
In the final minute that I have you you mentioned US Commerce Secretary Howard Lutnik, who gave remarks today. I think it's fair to say that he's been pretty integral in the administration's perhaps more hands on industrial policy, including when it comes to taking stakes in companies. The US government has done this to try to spur the kind of production that Micron's doing, but I'm wondering have you had any conversations with the administration about that.
Our discussions with that Mistationian are always focused on bringing up supply.
You know.
The President Trump as well as Secretary Lutnik are always focused on how do we go bigger, how do we go faster, particularly you know, when the supply is tight. And Micron is a technology leader today, we had a global technology leader today. Our dram as well as nan technology are most advanced ahead of others in the industry.
Leveraging that technology leadership and building the future of America with large scale manufacturing is absolutely a priority of President Trump, Secretary Lutnik, and our discussions with the administration.
All Right, Sanjay Morocha, the CEO of Micron, also the president and chair, thank you so much for joining us here live on Bloomberg Television and Radio.