Micron Restructures Business to Focus on Cloud Storage and HBM Chips

2025-04-18

With the rapid development of artificial intelligence (AI) technology, the demand for high-performance memory chips has surged. Micron Technology, a global leader in memory chip manufacturing, has keenly captured this market trend and announced a reorganization of its business units in April 2025. The reorganization aims to better meet the high-performance needs of large cloud service providers and AI data centers for memory chips, further solidifying Micron's leading position in the global memory chip market.

Details of the Restructuring

Micron's reorganization is aimed at seizing the transformative growth opportunities driven by AI, from data centers to edge devices. As high-performance memory and storage become increasingly important in driving AI development, Micron hopes that this reorganization of its business units will allow it to more deeply participate in customer projects, meet the dynamic needs of the industry, and thus remain at the forefront of innovation in each market segment.

After the reorganization, Micron will have four business units, each focusing on a specific market segment:

1. Cloud Memory Business Unit (CMBU): Led by Raj Narasimhan, it focuses on providing memory solutions for hyperscale cloud customers and HBM products for all data center customers.

2. Core Data Center Business Unit (CDBU): Led by Jeremy Werner, it focuses on providing memory and storage solutions for OEM data center customers.

3. Mobile and Client Business Unit (MCBU): Led by Mark Montierth, it focuses on memory and storage solutions in the mobile and client areas.

4. Automotive and Embedded Business Unit (AEBU): Led by Kris Baxter, it focuses on memory and storage solutions in the automotive, industrial, and consumer sectors.

Strong Demand and Market Prospects for HBM Chips

As a key component in AI applications, the market demand for HBM chips continues to grow. Micron's

Micron Sets up 'New Cloud Storage Business Unit'

financial report for the second quarter of the 2025 fiscal year shows that its Compute and Networking (CNBU) revenue reached $4.564 billion, a 4% increase from the previous quarter, accounting for 57% of total revenue. The HBM revenue increased by more than 50% quarter-over-quarter, driving CNBU's revenue to a new high for the third consecutive quarter. Micron expects the total HBM market size to reach over $35 billion in 2025, an increase from the previously estimated $30 billion.

Micron's HBM3E product has passed NVIDIA's quality test and has begun mass production, to be used in NVIDIA's AI accelerator "Blackwell Ultra (GB300)." In addition, Micron's 12-layer stacked HBM3E (HBM3E 12H) has entered mass production and is expected to account for the majority of HBM shipments in the second half of 2025. This 12-layer stacked HBM3E provides a capacity of 36GB, a 50% increase from the current HBM3E 8-high product, allowing larger AI models to run on a single processor.

Financial Performance and Future Outlook

Micron's revenue for the second quarter of the 2025 fiscal year reached $8.05 billion, a year-over-year increase of 38.3%, with net income doubling to $1.58 billion. Micron expects its revenue for the third quarter of the 2025 fiscal year to reach $8 billion, with a fluctuation of $200 million. In addition, all of Micron's HBM chips for the year 2025 have been sold out, indicating a very strong market demand for HBM chips.

Micron plans to invest $14 billion in capital expenditures for the 2025 fiscal year, mainly to build fabs in Idaho and New York in the United States, as well as in overseas regions such as Singapore. With the continuous expansion of HBM chip production capacity, Micron is expected to play a greater role in the AI infrastructure field.

Summary

Micron Technology's business reorganization is a proactive response to the rapid changes in the AI and data center markets. By focusing on HBM chips and hyperscale data center solutions, Micron can not only meet the current market's demand for high-performance storage but also occupy a more advantageous position in the future development of AI technology. This reorganization will help Micron maintain its leading position in the global memory chip market and further drive its business growth.

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