Micron Technology's (MU) Management Presents at Barclays Technology Conference (Transcript)

Micron Technology, Inc. (NASDAQ:MU) Barclays Technology Conference December 7, 2016 12:30 PM ET

Executives

Ernie Maddock - CFO

Analysts

Chris Hemmelgarn - Barclays

Chris Hemmelgarn

Okay, well good morning to all of you here and to those listening online. I'm Chris Hemmelgarn on Barclays Semiconductor Team. With me today is Ernie Maddock, Micron Technology's Chief Financial Officer. Thanks very much for joining us.

Ernie Maddock

Thank you, my pleasure.

Chris Hemmelgarn

I will dig into things; it's been an exciting couple of weeks for you guys, couple of big announcements. I guess the – we'll talk it from last week; you positively pre-announced earnings, largely attributed to strong DRAM pricing trends. I think everybody's biggest question is, it's been very healthy spot [indiscernible] this year. How do you see that playing out in the early next year? What are the big puts and takes for you?

Ernie Maddock

Yes. So we – we continue to look at the longer term supply demand trends and in the absence of wafer additions by Micron or one of the other industry participants, we continue to see those as healthy because the technology transitions that we're going through yield progressively fewer incremental bip [ph]. So as we look at the supply side of the house, somewhat between 15% and 20% supply growth coming from these technology transitions and that is against a demand environment that we think is going to grow somewhere in the range of 20% to 25% on a bip basis, and so the wild card is always the addition of incremental wafers but from a technology transition, vis-à-vis demand point of view, demand continues to feel comfortably healthy and supply is – tends to decline a little bit as we go out in time but obviously there is the wafer addition issue that we have to all understand can be there and can have an impact on