Micron Technology, Inc. (MU)

Analyst Winter Meeting 2011

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Feb 11, 2011

During the course of this meeting, we may make projections or other forward looking statements regarding future events or the future financial performance of the company and the industry. We wish to documents the company files on a consolidated basis from time to time with the Securities And Exchange Commission, specifically the company's most recent Form 10K and Form 10Q. These documents contain and identify important factors that could cause the actual results for the company on a consolidated basis to differ materially from those contained in projections or forward looking statements. These certain factors can be found in the Investor Relations section of Micron's website. Although we believe that the expectations were in the forward looking statements are reasonable. We cannot guarantee future results, levels of activity, performance, or achievement. We are under no duty to update any of the forward looking statements after the date of progress comes in many forms. It can be improvement, discovery, or a change for the better. And, often, it's something more. Progress is having the unprecedented power to map the human genome and using that knowledge to create lifesaving Litz And Medicine. Progress is the ability to instantly search any bookroom document ever and being able to access this information from anywhere on the planet. It's developing new ways to coordinate energy. As well as finding innovative needs of saving. And who flies this progress forward? Be doing. The World Micron. We're an international team of 3 Mars legendaries and scientific superheroes. 1 of the strongest patent portfolios in the world to power all these possibilities and more. Technologies are at the heart of the world's faster superpowers, performing astonishing in the past, we've been able to make sure that we're in the future. Products products are practically everywhere energy greener, information faster, and people closer. Our brightest minds are turbo charging key industries and changing lives. Giving you power in places you probably didn't even realize, power to to share, to inform, to learn, where my tribe, the world memory experts. It works back here. Testing. I'm going to do my presentation from this back corner, if that's okay with everybody. So when it gets done, it will Yeah. No. It's thoughtful. Okay. Check. Check. Check. Safe. Yeah. So we're gonna we're gonna get started as well. I apologize. So Do you have the number for, for him to ask? The hardwired lines in here. It's a disc Okay. A little bit, in a little bit different form than what we were talking about in the past. Which is, you know, we have our business unit. We call it a few. The second is the work that we're doing. So all all the folks have moving comments to talk about the operations we have around the world and some of our technology. Ron Foster will spend a few minutes around tremendrix, and I'm going to return back up, both comments and also as a little difficult as we've passed. I just had a question, but speaker, we'd like for you to hold the question and write them down, and then we will I'm not going to go through this chart. I've talked through it, really during the last year, it's about, throughout the year, about the transition the company and how we've changed over the last 10 years. And I used to do a comparison to what we did the prior 10 years. To bring us up to speed. And I just want to do a reset. This is kind of where we left off the last time that we had a conversation. And so, clearly, we've done lots of things to reposition the company. We have, I think, a pretty dramatically different footprint today than we did a few years back. And that's led to a number of things that we've shared before, which is we have, we have good product diversity we have good market segment diversity today. And you can see that as we've changed over time, we've really started trading a number of these market segments, many of which you'll hear about today. In addition to that, I made note that, for our last quarter, it's the first time in the history of the company that the DRAM segment actually dropped below 50%, for revenues of the company. So that's pretty significant for us as we've been going through this transition. And I only point that out, not because, we don't like DRAM because we new, it's just, I think reflective of the efforts that we've made to have a very, very broad memory portfolio for the, for the markets that we serve. So, seeing the, the topic of our business units, when we, when we did the Mnemonics transaction, we came to the conclusion that we needed to restructure the company in a slightly different way. And companies typically are organized, often by technology, or they're organized by And in our case, we have some of it a mixed model here. We have 2 groups: the wireless group and the embedded group, which are very much organized by the markets that they serve. And then we have the DRAM solutions group and the NAND solutions group, which, are, are, in some ways, organized technology. Yes, they serve markets, but they also support the other 2 groups, that are taking products to the market for which they have the capability of the core, core talent with which to develop those products. So, as we move forward and Ron will talk it later, we're going to try to present the company, to all of you in that form by these business units and so that they can be measured in terms of, you know, their revenues and so forth, to give you a better sense of what we're trying to accomplish with the company and the markets that we yes, there are some important data points, that you'll be interested in that we've traditionally shared, but we really think that it's, that it's a significance and important show how the company is succeeding in the markets that they serve. So with that, I'm going to have, Brian Shirley come up to start with the 1st group. Brian? Thanks. I think we've got to know. Okay. Yeah. Grab that for me. Thanks. Everyone. And, for those of you that I didn't have a chance to meet last night, my name is Brian Shirley. I run something called the DRAM Solutions Group. And what we wanna do today is talk to a little bit about some of the key segments and applications, that we're keeping an eye on and, certainly have a lot of product development to talk about as well. Some of the product developments really speaking to what we're seeing out there is the need for very high performance, out of DRAM, a growing concern around power consumption and really a, a thread that you'll see through everything speaking higher densities as well. So with that, a look here at, at really the, the 4 key, segments that, that we keep an eye on server, networking and storage, graphics, and consumer high, high def TV, for instance, and personal computing. Now, going through some of the key trends in each of these segments, really server, you know, I think everyone in this room, you know, we've all heard plenty about the cloud and virtualization. You know, I'm here to tell you today that at least in terms of server infrastructure, these are real trends that are rolling out as we speak. What that means in terms of hardware is generally, more cores server system and what more cores in those servers implies is a lot more DRAM density. So, we've really seen quite to shift over the last year, just an explosion in the, the number of servers out there, but even more than that, in explosion in terms of the DRAM densities required. Generally, we're moving up now, as a pretty good metric. The standard module that we sell into the server space has pretty quickly moved from something that's around 4 gigabytes to something that today is approaching 8 gigabytes. And, quite a bit of, demand in the upper end of that space as well, 1632 gigabyte modules. Networking and storage, another infrastructure market that clearly has been favorably impacted by, the needs of increasing bandwidth and content delivery. This is a space that took little bit of a breather, frankly back in October. I think everyone realizes that 2010 was very good to this space. A little bit of a slowdown that happened the, second half of the year. The good news is that, right now, we are starting to see that turn around. As a matter of fact, generally, the European accounts have, have been accelerating. And frankly, from some of the, the press releases that I assume we saw last night, from some of the other networking companies out there. Things seem to be picking up, but pretty good, penetration now starting with, 40g routers, high end routers to support this added content delivery out in the, the world's infrastructure. Graphics, in consumer, HDTV, obviously, in accelerating space here, what that means to us generally, a pretty hot demand, specifically around DDR3 devices, higher speed DDR3 cases, and we like the direction that's going. Personal computing, I'm going to speak momentarily about tablets, but obviously in the desktop notebook space, we can say today that we are firmly, at an average of 4 gigabytes per box out there. For those that remember some of the limitations around 32 bit systems, the good news is that's now done and over with. That is no to us. And generally, we see increased, content in some boxes going up to 6 and even 8 gigabytes now. What all four of these segments really speak to, the common thread here is a need, again, for devices optimized for higher performance, lower power across every single of them and higher density. And we really like that frankly from a product development standpoint. Every one of these segments, we're seeing if anything, increased need for product specialization, really some, innovative ways to try to get the power down at a given metric. Now, tablets, you're gonna hear, multiple BUs today talk about tablets. This is a space that we're, we're pretty excited about, frankly, The, in terms of DRAM, you'll hear, both my groups speak to, the X86 tablet space for standard DDR2 and DDR3 just now starting to roll out. Mario Dolo with the wireless group will also speak to the LP content, coming, and then obviously a large NAND content as well. You know, what we're, what we like that we're seeing here is that with the 2nd generation of tablets now coming out, the competitive bar is clearly getting, raised specifically to, multi threaded systems that require a much larger amount of DRAM. So we believe that you'll see fairly quickly the average DRAM content per tablet, rise from roughly the, 2.56 megabyte level up to the half, half gigabyte level. And pretty quickly, thereafter, up to the gigabyte level. Obviously, the units are exploding out there. You know, and I have to tell you if there, you know, there's, there's talk about cannibalization. If there's any cannibalization happening, it's generally to the net book segment, which frankly was a pretty nascent segment anyway. We don't see this as large cannibalizer of the desktop notebook space and anything that happens there, frankly, for a company like Micron, what it ends up doing to our NAND wafer count, as well as the infrastructure requirements of server and networking. To get that content out side, JEDEC is quickly wrapping up, the activity around DDR4 specific Micron has, taken a driver role in this specification at JEDEC, really working with our key customers to make sure this is a spec optimized around power, in performance. You will see DDR4 starting to roll out, in volume, really in 2012, we believe the applications that will first jump will be those that really require the power benefit specifically, tablets as well as even server. I think it's fair to say that DDR3 was one of the 1st generation we saw where the server, companies actually jumped first as opposed to desktop And the reason for that was the need for significantly reduced power in the system. We believe that's going to continue with DDR 4, and Micron has really played a driver's, driver's seat role there. Talk already about DDR4 devices, sampling, rest assured spec is still under development. So what you're seeing right now, frankly, is, is more of test chips, for instance, to get the interface right. We like positioning in DDR4 and are ready for, for a full rollout here, sampling in 2011 and, full, full volume 2012. Happy to say that our next technology, is out and sampling as we speak. This something that we call the 3x nanometer generation. Mark Durkin will speak more about this. This is a process technology that allows us to get, greater than 50% more devices per wafer, off of any given 300 millimeter wafer. One of the nice things is that this is a technology that's been optimized around 1.2 volts, that speaks to DDR4. It also speaks to the, the kind of power needs, in consumer that generally run off of, a, a single battery. 1.2 volts is a pretty fundamental voltage in this space. And this technology 3x nanometer helps to enable that, out and sampling today, and we're, we're very pleased with the, results we're getting on papers in our fabs now. Now, speaking specifically to the, to the module space, we, we are rolling out we speak a new module form factor specifically for servers, this is called LRDIMM. And what that stands for is load reduced DIM I was speaking earlier about the needs in the server space, specifically for higher density, lower power, keeping the same performance required There's a big problem in servers, however, whereas you start to add more of these memory modules that the system bus starts to slow down. It's just a result of having all of this extra loading out there in the, in the system. This LRDIM that Micron is rolling out solves that problem, specifically with some new buffering technologies that allow you to, either double the density per server and keep the exact same performance level, or, for instance, get roughly 50% higher system capacity, plus a 67% higher bandwidth. So pretty fundamental technology the, to the server space. This is something that's, that's of this, in the second half of the year, specifically with the Romley rollout, the, the Sandy Bridge variants, optimized for servers. Now, talking specifically around, applications, Micron can say that we have nearly single handedly driven a standard in the networking marketplace, called reduce latency DRAM. In This is a, a memory technology that's really optimized specifically for high end routers, reducing the amount of, of time or latency, that it takes to get out random, random pieces of information. This is a market that, that over the last eight to 10 years, Micron has, single handedly driven. It is at a point today where what we call RL2, is a significant double digit percentage of our overall networking revenues, and we're happy to say that we now have something called which is really the next generation, specifically optimized for the kinds of network routers coming out today 40, 40 g routers, even 10 g routers can handle this. This is the first DRAM ever that can actually, from a single component, outperform high speed SRAM. So, obviously, SRAM not a large player anymore has discrete space because of cost reasons, this furthers that trend from a, from a cost and a performance side. This is the device that would the densities required in these upper end routers is really, completely nullifying, the old space of high speed SRAM. Now, lastly, what we wanted to do today is, is give you a, a glimpse of a new innovation. We are rolling this out today publicly, this is a, this is a new class of memory, specifically something that we're calling, a hybrid memory cube space. When I was speaking earlier to the various performance segments out there, there is a common bread where it's getting much more difficult because of power and speed and density requirements for DRAM to give the kind of performance increases necessary to really make these systems work. The systems out there need a 5 hydrin of data. And frankly, because of some of the limitations in the system, we are, the entire industry really been challenged to deliver that. This is a common industry problem, something that we call the memory wall. And it's, it's been an increasing concern, specific as these systems require more bandwidth. And, ironically, inside of the DRAM, not to get into the technical minutiae, but DRAMs happen to be very, very highly parallel devices. So inside of the DRAM, we're getting all of the data necessary. We just can't get it through the traditional pipes over the processor. This one on top of the other, stacked in a memory cube, we've connected the, the internal sensing and, and data pipes of that DRAM with something that we call through silicon Vias, one on top of the other, we connect all that data very high speed link over to, the processor. When you do this, what you end up getting is something that in about one eighth of the base of a traditional DDR3 module. We are actually able to deliver 20x of the bandwidth that you would get that module at about 1 10th of the power per bit. It's absolutely spectacular, the kind of bandwidth get out of this device. This is in, Silicon today. We have prototypes, and I'm happy to say that, we're working with a a large number of high performance computing, networking OEMs, as well as processor providers out there. This is not 2011 technology, but you, but we are, I'm happy to say in, in an enablement phase, with more than 1, networking and high performance computing providers. So, very, very pleased with the direction this is going. You'll be hearing more about this over the next 6 months. We think this really speaks to the ability of a company like Micron to provide a system solution, optimize not just around the component, but also around assembly technology, logic technology, to give performance numbers that you can't find anywhere else. Brief photo of the, the actual prototype set up. In the upper left hand corner, you can see a photo of what the actual solution looks like. So in conclusion, really in the DRAM space, pretty exciting times, frankly, just in, in, in exploring of, needs driven by, the world's infrastructure space out there, high performance computing, networking applications, really driving some neat solutions. Micron has the portfolio out there second to none to provide, the real answers around those is. And in the, the innovation space, the right innovations to drive the, the product portfolio forward. So with that, I'm gonna ahead and turn it over to, to Glenn Hawk, who heads up our NAND solutions group, and we'll take questions and answers at the end of the presentation. You. Thanks, Brian. You know the the NAND market is a very diverse place and it's getting even more diverse. Brian mentioned, what's happening in tablets. That's leading to NAND market diversity, as you can see on this chart. There's another breakout segment here, as, as you look over to the right, SSD are solid state drives. I'm going to talk a little bit more about that, that segment. It's about $2,500,000,000 this year going to $7,000,000,000 by 20 14. You know, I had a few questions over dinner last night about how the business units work other. And I think what Micron is doing in NAND is a good example of that. If you look at this NAND space, it's, it's kind of, interesting to superimpose the business unit coverage over these segments from a NAND perspective. As you can see, the NAND Solutions group covers the larger, the majority of this space, the real high volume applications that drive the technology. That's what, the NAND solutions group brings to the, the party and SST as I mentioned will be a key part of that that we'll discuss today. But we also deliver those key building blocks that the wireless team and the embedded team gonna hear from next, used to deliver value added NAND solutions for their segment. So there's a very good partner between the three business units at Micron that are promoting NAND. And, between the three of us, we're going to deliver better results than any one of us could do so individually. You know, it's kind of, it's kind of fun to just pause for a moment and reflect on what's driving this diversity. And I'll go through a couple of examples here. I'm sure a lot of you like, like me can remember when it was an incredibly agonizing decision to depress that button on the shutter of your camera, not only were you committing a small piece of non recyclable film, some development chemicals and some development, some paper, just to see the first image. And, you also probably remember that of the, the Photoshops would offer, heaven forbid, double print so that you could easily share them with your, you know, with your friends and family. And If your artistic capabilities were comparable to mine, the net effect of that was probably a greater distribution to our landfills than that was the actual sharing of those, those, those images. Of course, you know, this right here that NAND technology is completely revolutionized that. Our Lexarvon has done a wonderful job of building a value a business around that very model of workflow as you capture those photographs, store them, and reuse them and, and modify them. We offer, not only, very high performance cards, which store those images, but we offer, high performance, readers that make that entire workflow from capturing the image to using it much, much more effective. As a kind of a humorous note, we even offer, image rescue software. And that's not to rescue the images from our problematic flash media. It's really designed rescue the images from human error. You know, if you, if a, if a high end photographer accidentally deletes an image, that's a big cost of them, or we even offer a service if, if cards are physically damaged, we can get those back and help the customer recover those images. So a nice example of how you can build a much more interesting value added business around as you'd like NAND Flash. I'm sure that, you know, the stories are very similar with file storage. It's, floppy drive soon here are kind of our find today, and it's kind of hard to find even a floppy drive reader so you can get data off of those things. It's much more common now to find that U. S. Devices. And again, another good example of the work our Lexar team is doing to find a value added segment within this and serving it well shown are a couple of our recent examples of, USB devices that can not just move files from one but they're, they're so dense now. You can even use them as, as always on, plug and stay backups for, for your notebook shown here is a couple examples of some of those high density devices. We even have an innovative product where a little capacity meter is put on the outside And again, I think our Lexar team's done a really nice job with this. Of course, you know, that others have built even more value added businesses around these evolutions, in the area of music, of course, you all know the story there, some large these have done a very nice job of building, you know, basically changing the world and all of this is driven by NAND Flash. The, the next revolution I want a little bit of time talking that was discussed earlier, certainly, is being enabled by NAND Flash. But another one I want to speak a little bit more about in detail is solid state drives and And, you know, really the state of the, of the industry today is that a lot of the user experience from the data center to the desktop to the notebooks, it's limited by these spinning magnetic drives that consume a lot of power and are noisy. Other things. And, this is where Micron's been doing a lot of work in the last couple of years to build systems capability and deliver more fully integrated solutions, to the, to the customer shown here our Micron Real SSD client C300C400 and our enterprise P300 drives. And that's definitely enabling revolutionizing everything from the data center to the notebook, and the, and the desktops. What that looks like, same graph now, it shipped, plotted with the total number of bits shipped, you can see that there's a very nice, from NAND manufacturers perspective, exponential increase in the number of bits that's been shipping and that exponential effect is going to continue over the next few years. And you can see a lot of that, is driven by 2 new breakout segments that we discuss tablets and SSDs, overall a 78% compounded annual growth rate as we go forward. The SFD, aspect that I'd like to speak a little bit more of is that not all SFDs are created equal. In the, in the upper left here, what you see are the units shipped by year. And you can see that we're really just at the beginning of this revolution. Of course, the client SSD shipments are going to significantly outpace the, enterprise shipment in terms of units just because of the size of the market. But if you look at the lower left and you look at the revenue generated from those 2, they're almost equal. Okay. And the graph on the right demonstrates why, it's harder to create world class enterprise drive. You need higher liability, you need better performance, you need much better quality. Some of the drives will have 32 or more individual NAND chips within them. And, for semiconductors, if you're around 100 defects per, per 1,000,000, that's not a bad quality level. But when you put 32 or more, though, into a system, 3200 DPM is not something that's acceptable to the enterprise customers. And you know what? Not everybody in the world can build a drive or assist them with 32 or more individual components in it that's going to deliver the performance at that quality level. It's very, very difficult. And with the challenges of NAND scaling going forward, it's only getting harder, okay? The net effect on the, on the left, as you can see, is this year, for example, the dollars per gig that are, the enterprise drives, it's about an ADAC uplift in terms of the amount of dollar per gigabit you can get from an enterprise drive versus a client drive. Now, this graph by no means suggests that we're only going to be focused on rise. Okay. Another level of detail here is even these client dollars per gig are pretty attractive compared to the rest of the barket. So at Micron, we're definitely going after both. There is a specific focus on enterprise drives though, and that's really what's going to drive a lot of our technologies from Silicon Assistance. And that's why, Micron is in a leadership position in this area you know, really the, the, the, in the end, the, the, the, the, the companies that are going to be able to deliver the best drives in the world have to have complete command an in-depth understanding of everything from the silicon technology all the way out to the system. Now, what this graph shows is what we've done over the last 3 years. We've established, nearly a year lead over competitors in terms of time to volume shipments of the leading edge NAND lithography. Will explain, a little bit about what we're going to do to maintain that lead, if not extend it on the next node. In addition to that NAND, so in leadership, a lot of you may not be aware of the strides that we've made in the last couple of years at the more fully integrated systems solution level. A number of awards, have been granted to our client C300 C400 as well as our price P300 drives. So, clearly, we're doing something right here. The client C300 story, I think, is very interesting. We came out last year with a drive that one figure of merit is the, the, the read speed of these drives, our C3 100 came out with a 6 gig per second, interface faster than any of the laptops or most of the laptops on the could even take advantage of. Those, those laptops are just arriving now, and our product was there ahead of the market need We intend to do that again in the future. The C400 that we just announced, not only is it based on our 25 nanometer MLC NAND technology, also delivers a 20 percent boost in read and write speed over the C300 predecessor. So we've really done a good job of establishing our technology, our capability at the system level. And it's putting those 2 together. That's really the secret, you know, I'd like to drill into that a little bit here. And what we're showing here on the left is in 2009 2010. This shows the the majority of, you know, no surprise or hard disk drives, that's shown in the light blue region there in the upper left. In the lower left in the darker blue regions, you see the solid state drive contribution to that. And you have to be careful with this chart because the scale so we had to basically break the Y axis if you see there. But so, if you sort of magnitude that, that lower or magnify that lower left section, you see a very interesting story emerging. As, as enterprise SSDs began to ship, it was actually third parties that really got a lot of this market started. These are companies that are neither hard drive manufacturers nor a NAND silicon manufacturers. But they are, for the most part, smaller companies who have gathered some experts in fields like signal processing and error and found ways to take the, more commonly available NAND on the market and figure out how to make it work in these applications some might call them alchemists as kind of a joke here. As you move to to 2010 though, you can see that the, the, the people that really understood the NAND, technology in the dark blue gained a little bit of ground on those guys. And SSD's overall grew as well. I think the question, before us, and you obviously know my bias is as you look out in the future toward 2014. The question is, who is going to really win in this segment? And it's my assertion that it's going to be Micron. The NAND technology manufacturers have inherent advantage over others in this space, again, because we understand everything from the silicon out to the systems level. And, it's no seek that NAND scaling right now is, it's becoming very, very difficult, very, very challenging. For example, as we move to next NAND litho, the controller complexity that's required to manage the NAND, the gate count on those controllers is going to increase by about an order of MANG attitude from 100,000 up to a million gates. And that's because as we scale these technologies, it's getting harder and harder to the kind of performance quality reliability out of this technology that's required for these premium segments like, FSDs. So, this is definitely one of our focuses. There's these 2. This is the one I wanted to share with you today. So in summary, the NAND Solutions group or a business unit that's dedicated to the rapidly, growing NAND data storage market, we're exploiting our technology leadership, again, from silicon to systems. And, we're targeting the incremental, margin opportunities in a lot of these premium subsets segment. All we need is, is the capacity Mark Durkin is going to speak a little bit more about that later. Thank you. Okay. Also, I didn't meet yesterday. I am Mario Richardello, and I am in charge for the mobile wireless business unit. Within Micron. I am coming from the mnemonics shown. I'm with Micron only about 8 months today. This is, the first time I am participating to this kind of events for Micron. And, I am very pleased have the opportunity to spend a few minutes with you, bringing you along the wireless market challenges and opportunities to highlight what are the key strengths of a micron in that segment. So this is describing, at a high level, the market dynamics. We have a co is that, just for simplicity, a segmentation of the market, dividing the market self in 2 main categories, one being the smartphone and the other one being the rest of the applications. We can see on the left side, sorry, on the left side of the chart, the big part going is does not fall. There's no surprise for us. While the rest of the market is a very significant improvement, but, plus or minus stable or slightly growing through time. Clearly, each part of the of the market many of the different requirements in terms of technology. So if you look into the bottom part and then into the upper side, right, path, there is an indication of what technology are the main stream technology supports in those markets and, on the smartphone, there is a very, very interesting, that, it is really driving up technology requirements for both NAND RAM, while on the rest of the market, we basically still focusing on more technology, even if that technology is not growing through time, And, however, we do expect to have a next level of innovation through fast change technology, which might be the key for us to extend the life of that no right architecture, which is based on execution in place of the soft player. If we look to the same market, picture in terms of dollar amount, we clearly see that, NAND and more Bazda Amara consuming, represented the majority of the dollar amount, while there is the NOR portion and, link it to the NOR portion, the Simostatic RAM content which are at plus or minus stable and will continue to be roughly stable around the next few years at least. The technology which are adopted in each of those segment is clearly indicated on the right side. And, the additional message that, I want to pass there is that, the mobile and portion is the most demanding technology in terms of progressing the future and progress in the performance of the of the platform. So, smartphone are requiring more and more that I'm not only quantity, but also in terms of improved performance. And as you can see, there is a trend similar to what happened in the PC and actually follow the PC road map, moving from low power to GR1 and which is the export of today to DDR2, which is an improved version in terms of, speed. And, there is already an ongoing development to generate the DDI 3 version of the, of the tech, and, on a longer term, also, the possibility to go towards a completely different architecture, which will be a very, in no architecture based on a Y IO type of architecture. Just to summarize, what, what is our key trend, key strength in that market, we can show that, basically, we are, the in the world, which has the widest positive range and also a complete suite of technology, which is unique in the market. We have the norm, we have the NAND, we have the RAM, and we are going to the PCM as well. So the whatever technology is required in those applications, we have it or we are going to have it. Only we have them, but we also have that very upper level of competitiveness. We are leader in the name that was already indicated by Glenn. We are a non believer on the mobile program itself. We are the leader in NOR, and, we definitely the innovator in the first chain. So, altogether, we are positioned uniquely to be the leader in the go market. The customer recognized that, that strength. And in fact, they are webbing us on most of their platform. We as you can see there, we sold in 2010 a number of solutions. We're not selling products. We're selling so which is, in the, around 5,500,000,000 foreign, which we're introducing the market last year. This is representing roughly 35% to 40% of the total number of phones sold into the market. And, if you recall on the entry level phone where the more is, the the sweet spot, we are the unit beyond 50% of that market ourselves. So, we are already leader in that market, but, our objective is now to further enlarge that leadership, extending it to the smartphones solutions and, on the longer term also to the black, which has been, mentioning that there's a couple times, and I will, continue to, to talk about that, later on. Just going to a a one level down in terms of, details. And you can see there, how we, intend to approach the different segment of the market, and what are the typical, mix of product to each other product to serve those market on the left side, we have, the, what do we define as an intent and what we're pulling, which are not just the very low cost, but also in a certain portion, also the future one category, which is represented there. And that portion is a main result with the true norm and the true wall density cyberstatic RAM or the DRAM, we can see in that portion significant for in the future. The only real possible innovation that we foresee is the introduction in that show in the market of the face change technology, which, as I will show after, will bring a significant advantage both on the functionality and on the cost structure as well. In this smartphone, we, we had a presenting their one single category, but in reality, there are, there is a range of application in the smartphone that is not just one indication. This is a the area where NAND and mobile RAM are dominating. In the NAND, we we have, the mix need of a single level cell architecture for density solution. And we are more and more getting to the multilevel cell architecture for the higher upside of the market. In the, with all the limitation that Glenn was mentioned before in terms of, the the operational performance of NAND progressing through technology and therefore, to the requirements to get those men manage it to some kind of intelligence on board, which is what we call the manager demand in the end. And in the, in the round portion, as I said before, we are, today, the switch port is DDR1, but, we are already in the of introducing DDR2, and we are developing DDR3 while we're working as a a driver for the wide IO architecture for the future. And also, the the the bread, if you look to the the bread the mobile angle, we consider the tablet as an extension of the mobile market Again was saying Brian was saying that there is not an overlap between PC and tablet and there is no part of the market, which is cannibalized or no significant parts of the market which is cannibalized. From the mobile perspective, there is not at all the type of risk because it is actually a true extension of the capabilities of the mobile phone through features and additional functionalities. And again, in terms of product, which are supporting that application we don't see a big difference. We see the same technology product, which will, which are users in the smartphone. We need to be used at the, in the tablet, and I, namely, EMMC solution, embedded multivia card, DDR1, DDR2, and in future DDR3 and YII. This is a very crowded chart, which is just showing you that the the technology and the product are actually a kind of box, building blocks for us to develop solution, which are, in most of the cases, using, multi multi chip packages in a staggered configuration. And our combining different density of product both in hand or north and ramp is offering differentiation in terms of density of the product we are, we can together in the same package is offering also a large variety of packaged solutions with a different footprint, different bow outs, etcetera. So, altogether, we have a large prolific of a product which are supporting globally the needs of our customers. A few words on, on fair change, I already mentioned that, fair change, might be a willing continuation of the known architecture for the future. Actually, this chart is showing the way we want to position PCM. We have an advantage of application, which are, ranging from the very, from the lower the market to 2G namely architecture up to the low cost 3G, does markets, those applications are supported today by either more, with the combining with the phostatic RAM or DDR RAM. And, to some extend also by, special configuration of NAND in particular one end, which is basically using the NAND technology, but in a normal like fashion to support the application. All the the application will continue to exist in future, but we see a continuity through the ACM, which will, extend the life of those products and those architecture two times and also will offer significant advantages in terms of performance and a cost of ownership at the application level. From what concerns the performance I think the major one aspect is that PCM is scalable to future technology novels. We have already that, in the know we're reaching the limits beyond which we cannot go in demand that there would be a war sometime time in the, at least from what we know today, we don't see that being a near term type of risk, we see scalability to be available for the future. As indicated there in the picture, we have already developed a solution based on 4 nanometer, but we are working on, the feasibility of a 2 weeks technology. And we do expect the possibility to further scale down the technology to the next node as well. In the performance aspect, just to mention a few of them, number 1, we have the endurance, which is a key factor for Nimble attack memory, we have the possibility through PCM to reach 1,000,000 cycle, right at a cycle, while the current number attached technology are limited to 100 kilocycles or below. So, that's a ten times improvement in that performance. That is a power consumption as an advantage. The technology is self as not making use of any charges moving, in one direction or the other. It's just, basically, you know, as the name is saying on, a fair change. So there is a material where the same a bit determined by either having a crystalline status or an amorphous state but there is no moving parts. There is no charges moving from one person to the other. It's just the status of the material change and the determining guide at 1 in terms of logic levels. So this is, definitely, consuming much less power in both programming phase and also in the operational stage. And that is, one more important feature that is much, much improved with respect, at least with the respect to no if you take a note from one side and then on the other side, you have no, which is a very highly performing in Redid. And very poorly performing in writing. Why is that? Because anytime you write into into a more world, you have to perform in a racing cycle before writing. So, this is really time consuming and it's forcing the system to run through some all the stages to take into account the delay that any cycle variety is generating. On the contrary, if you look on in end, you have, exactly the reciprocal. You have a quite, fasting writing and we are a relative in a zone in terms of reading. Now, the beauty of PCM is that, you are fasting to, because we don't have any need for a 2 to 1 to put in front NLS cycle. So you just go and write directly into the memory, not only, but you can also, make a single bit iteration. You can a single bit, you can program a single word. So a fast programming and very, very huge flexibility. And you get a very similar speed in reading that you have in order. So the combination of the makes that technology very appealing for that level of application. On of that one, one, architectural innovation that we introduced is, as you can the, the possibility to have, the, the, the, normal attack memory and, the, volatile memory sharing the same bus. So we have, the no more time memory having the same interface than Digiram, which is, in that case, did the 2, which might become a DDR3 in future. Therefore, we can put those 2 memories into the same package and then read them on a single bus to the chipset. This is a are big advantages, advantage in the sense that is simplifying about the application itself. There is a much software to be developed in a much simple way and also reduce the cost and the complexity of the PC board because we have, less line to drive. We have, less connection. So we combine the, the, the functionality advantage just with the cost of ownership advantage, which are generated through the architecture. And the product, as you can see there is a the available. We're starting, the central phase. And, we have already design at the end, the product with a major chipset bundle, which has developed a specific platform based on that architecture, which will be introduced in the market within the year and we'll see a ramp up in the first out of next year. So, the technology is reaching the level of manufacturability, so not still in technology to have for the future is something which is going to materialize soon. As I mentioned before, the smartphone is a much more complex range of product than I indicated initially. Basically, we have identified so far, but, I think that is a continuous range of product there. But we have identified just for simplicity 3 category, which have, the the upper side, the application, the middle side, and the, and the low, low, low power it. And, clearly, these are driven by the level of sophistication and functionality that you put into the system, which ultimately is leading to what is the price, there's a reach the product is offered into the market. So there is continuity with the functionality price and consequently the memory content that is offered within the application. So you can add value, but basically, we remain on demand from very low density SLC architecture 1 and 2 gigabit up to 6 4 gigabytes. So we have the full spectrum and the same applies for mobile run, which is ranging from, I'll say, 100 gigabit up to 4 gigabit and beyond. Actually, we already see in the higher parts of the market application requiring 8 gigabit memory, 6 gigabit and 8 gigabit memory to fulfill the application needs. On tablet, I mentioned all the, we, we, we look into that application from the mobile angle. Our colleagues are looking to that from the PC angle, but overall, what we can say that, that's a big opportunity for Micron because it just creates a new needs, a new requirements, a new, volume, or pitch requirements on both on NAND and Lam, we really support that market, from is our portion with the product, which are already part of our normal roadmap, which are essentially in the, in the land, what I mentioned before, DVR2, DDF3, and the future wide IO architecture and, in demand, mostly the MMC. So you with the multi gigabyte densities, mostly in a standalone fashion in that case, because the performance of the system required to have the non volatile part of the memory separated from the volatile part of the memory. So a big opportunity for the company and big opportunity clearly for mobile, for the wireless segment as well. Just to conclude, I think in summary, what I can say is that, Michael is positioned in a new unique position in the market because we have a complete suite of technology and product, actually we had the widest product range of the industry see. We are, supporting the market, all is, is poor So we are covering 360 degrees, the total market. But clearly, our main focus on those applications, which are driving more value added and more margin for the company. And namely, this is the smartphone area and the tablet area. Our key success is, as for every major memory make the leadership in technology. But, in addition to that, we need to have a superior focus to our customers. Our customers are expecting us to be flawless in the execution. So we need to have a real strong focus on customer, which is our tradition, by the way, wireless is a a better donor, few big players and you need the real to have a dedicated support teams to those, to those players. And finally, we need to maintain competitiveness, not only through technology, but through manufacturing and execution, the accretion in general. So with that, I will conclude. Thank you. Tomobi, who is managing the ESG BU will Thanks, Mario. I'll spend the next 15 minutes or so, walking through the nature of the embedded market and why that leads it to be a somewhat more, stable and profitable business than other parts of the other segments in the memory business. Talk a little bit about how we see our competitive position in the marketplace. Highlight handful of what we think are some very exciting growth opportunities. And then conclude with an overview of our strategy to continue growing profitably and gaining share in the If there's a single word that I could use to describe why we believe the embedded business is a, is a bit more profitable and a bit more stable. It is diversity. It's diversity across market segments. The various sub segments of automotive, industrial, consumer networking, give a balance to the portfolio and they have a broad range of applications from a service perspective, the very demanding service quality requirements of automotive and ISO TS qualification. And an early broad range of products, everything from a Microsoft Connect set top box to a piece of metal equipment, medical equipment, like a, like a cat scanner. So there's a diversity from a technology perspective. Most of the segments require, nor, NAND, and DRAM. And within DRAM, there's actually, differing requirements, not only for mainstream DDR2 and DDR3, mobile DRAM as well, of course, as legacy. And of course, there's diversity from a customer perspective. Most of the segments that you heard talk about by my fellow BU leaders today. By the time you got down to customer number 10 or so, you probably were covering at least 90% of the market opportunity. When you look at the embedded market more broadly, and you have to be well into the thousands before you're covering 95% of the TAM. And as a result, you need to have a very different channel strategy for going after those customers. And I think we're, able to leverage some of that channel strength and knowledge that came from Mnemonics with their embedded business to build on the strength he exists within Micron to do a good job of attacking that marketplace. You're hearing a lot about Micron's leading a as important for the embedded business is longevity. When you look at an application like, automotive or a core networking device. The cost for an automotive electronic supplier to re qualify, an engine control system or for a networking company to re qualify a core router at a company like Verizon. That cost can be so high that it easily swamps the the cost advantage that they would get from moving on to a lower cost memory component. And so as a result, there's a demand for continuing to produce product for 5, 10 in the automotive world, even 15 or 20 years. And as we are meeting that need one of the benefits for Micron is that it allows us to extend the useful life of the man factoring assets that attractive profitability in the segment, there's also very attractive return on invested capital. And one other comment, you know, you look at the slide there and it says leading lithos, keep in mind that is leading lithography in the context of the embedded market, certainly leading compared to our competition, but a capital utilization point of view, it's not driving incremental capital within Micron. We're simply leveraging investments that have already been made to support the other business units. So that's on switch and talk a little bit about, you know, how we view the competitive environment. And I'm gonna do this in 2 broad categories. Certainly, one are the large multi memory providers. I'd I put Hynix and Samsung into those categories. And certainly, they are very formidable competitors. Samsung is the only guy that has all three technologies, NOR, NAND, and DRAM. And they certainly have high volume, a cost effective manufacturer, I think the challenge they have is that from, an organizational focus on the embedded market, from a channel threat and from a manufacturing philosophy, as it relates to turning over technology nodes, it makes very difficult for them to address some of the unique needs of the embedded market, particularly that tale of customers 51 through 3000. The other category are the, the, the narrow, you know, single product focused companies, people like electronics or expansion, that, that are focused on the service requirements of the embedded market, but they're doing so with essentially a single product. Macronix is very focused on low density SP AI, expansion, primarily on mid and high density parallel norm. And while they've got the service and the segment focus, the lack of other large memory businesses gives them a significant challenge in terms of in house leading edge technology development as well as high volume manufacturing capacity, which of course has significant impact on cost. So let's now switch gears and talk a little bit about some of the growth opportunities that we see and I've done this broken out by a number of the subsegments within Embedded. And I'm going to start with Automotive. It's actually the smallest of the segments in absolute size, a little bit under $1,000,000,000 this year, but where we see some of the best growth opportunities. 1st, way the largest of which is in dash, so called infotainment and navigation, and driven by a fairly explosive end for entertainment content to be delivered within the car as well as navigation information. We're seeing high end systems that are shipping today have about a half a gigabyte of RAM, 4 gigabytes of NAND using the form of eMMC. But we're enabling today systems that will be coming to market over the next 12 to 24 months that will have 4 gigabytes of RAM and 64 gigabytes of solid state storage. So you're starting to approach the memory densities that you're seeing in the tablet space. Also some very opportunities in driver safety, things like night traffic safety sign recognition, And even programmable dashboards, pretty soon you build it aside, whether you want an analog or a digital speedometer, whether you want it that kilometer or not. And of course, all that optimization requires memory. And we're going to leverage again the broad portfolio, ISO TS Automotive qualification, and our quality focus to continue to gain share in a very attractive segment. IMM, Industrial, Medical And Milaro, actually not a significant growing market in terms of what the 3rd party see, but we do see probably our best opportunity for gaining share. We are able to take products many of which came out of the legacy mnemonics and Micron portfolio that were originally developed for automotive, that from an industrial temperature range and longevity perspective meet the needs of this market and put that broad portfolio through channels that are increasingly focused on that 51 through 3000 customer tail. And this is the sub segment that's far and away is the most diverse, in terms of number of products and customers. In happens to be where we're seeing some of the very early design wins that are ramping for PCM. Generally, customers are taking it advantage of the multi memory functionality of PCM, its ability to combine the characteristics of RAM of E squared and of flash into a single device. And so, we're seeing designs ramping and things like smart meters, not big ours yet, but we're, we're excited by the early validation of the technology that we're seeing. Your, all my colleagues talk about tablets. ESG actually doesn't have much of a direct play into tablets, but we actually have an indirect play in many of the growth drivers in the network and the telecommunications area. When you look at growth in products like customer premise equipment, most of which is providing wireless or cellular access or both, at the end of at the end of the wire. When you look at things like 3G and 4G cellular infrastructure. And when you look at the core routing, that's moving that, a lot of that demand is getting driven by the need for ever increasing amounts of wireless data going smartphones and the tablets, as well as to the, the tremendous bandwidth growth coming from, from IP video. And again, from a micron perspective, the industrial temperature range and the longevity offerings are tuned very sell to this marketplace. And so we're going to drive that hard to continue to gain share in this space. The final I want to talk about is consumer. Of all the sub sub segments, this is the one that, the designs turnover relatively, the quickest. And so as a result, some of the, some the trends in particular, the trend from a parallel NOR over to NAND, in some cases, a company with SBI, has happened and continues to happen the most rapidly in the consumer segment. And so we're able to provide our NAND and SBI offerings to take advantage of manage opportunities for, for Managed NAND for E MMC. There's a desire to, to deliver content, certainly feature like movies, in some cases to, to pause live video in systems like digital TVs, set top boxes, up Blu ray DVD players. And so that is, again, driving the need for EMC managed NAND. In some cases, up 64 gigabytes. And so we'll take advantage of our leadership position in NAND, to drive growth in this you. So that's shift focus a little bit and talk about our strategy for, how we take advantage of these opportunities and continue to grow breath, is that across NAND, nor DRAM, in the future PCM and all of the various segments across those 4 technologies, we have far and away, the broadest and most complete offering very much tailored to the service needs of the embedded market. But product breadth is actually a little bit more than that. In addition to the, in addition to the silicon, it's also about having the right multi chip packaging solutions, having the right software solutions like drivers. And, and having, in some case, therate controller technology. In many cases, already prequalified on the reference designs of our chipset partners that are going after key segments in the marketplace, so that we can, make it very easy and speed time to market for both ourselves and our customers in these key segments. Technology leadership, you'll hear a bit more from Mark after the break, about allergy. But at a high level, certainly the leadership in NAND is very beneficial to the numerous opportunities that we see for MMC managed NAND across the embedded segments. The DRAM roadmap suits the needs very well. And in NOR, We've been shipping 65 nanometer for about 2 plus years now. We're actually going to be ramping 45 nanometer on two millimeter in the second half of twenty eleven. And going forward from there, as we shift to high volume in house 300 millimeter may factoring with 45 nanometer, we believe we will have a sustainable material advantage versus our NOR competition with regard to wafer cost. Stability, product longevity is an important part of the stability message. And so, I talked about the fact we're now solutions. At the same time, we're still shipping 16 gigabyte, NAND device I mean, 16 megabytes, excuse me, NAND devices and doing that very profitably. We're shipping 8 gigabit, NOR module going into certain of the amusement segments of the marketplace. At the same time, we're shipping 512 K bit SPI products, again, very profitably. But stability is more than just product. We work very hard to maintain common footprints to maintain common software interfaces, including things like drivers, from generation to generation. And when the technology forces us to change a feature within the device, we work hard to use software in some cases controllers so that we can mask that change from our customer base. And stability for embedded is all about making sure that every element of using product is stable for a customer base that in most of our segments hate change. The final, Dan, want to touch on here, another one of the benefits that we have from the the breadth of that we vice. We aren't walking in there, making that recommendation because it's the only thing we have in our bag, or because it's the only version of that We didn't just obsolete, right? We've got the full suite across all the products and across legacy and leading technology. And So, we're making that recommendation because it is really in the best interest of the customer as the best solution they could have. And we believe we can bridge that to build a stronger relationship with our customers and really become, our customers trusted memory. It's sir. So, you've heard how we are leveraging the the broad, portfolio, the broadest portfolio in the industry. How we're doing that both on leading edge and, leg technology nodes. How we're putting that through the right channels, service to a very diverse customer base within the embedded marketplace. And of course, doing that with all the right service and support that our customers demand. And as we continue to do that successfully, we will that this will allow us to contribute, a growing, profitable and more stable element call. And with that, we're now going to take a short break, I think, about 15 minutes. And when we come back, I think Mark Durkin is going to start off with an overview on operations. Thank you the the board, the tools, the locks is down, and I cried too. Don't let us be for the She can domains over the phone. Her diamond printed. By the way. I'm It's In New Never enough. Me. You? This back my you're the I'm me. Okay. You better than the past. I'm lucky just two angles. That's that it's okay. Even when you and just like, You make these somewhere there speaking. Already come in here. Oh, and it's rising at the back of your mind. It never could get in unless you are fed in. And now you're here and you don't know why team. Okay. We we need to get going here pretty soon. If we can get everybody to kind of come in the door and and have a seat where, we need the presentation started again. Next step is going to be Mark Duke and our president and COO. And so as soon as we everybody's seated, we'll start the next phase of the presentation. Thanks. Alright. Hello, everyone. Thanks for coming. It's good to see, so many familiar faces here today. I want to, start off by trying to focus a little bit on some of the pieces of the company that support units, that you just heard from. But before I jump in, I, I, I hope that you got a couple of, takeaways beyond just how these business units function and, what they're focused on and why we've organized the way we have. The first of which is, we imported a lot great talent, with the NeuMoDx acquisition. And you can see just a small sampling of that represented here today, as some of the leadership in business unit organization. We've also, of course, imported Tom, maybe who did a fantastic job, for you today as well. So, that's point 1. Second way is, Micron's still a very technology focused company, but hopefully, as these guys went through, all the focus on differentiated solutions, system level solutions, and, and the amount of attention that's going to understanding our end customer applications and the markets that our products go into. Hopefully, you have a sense that we're also a, more of a market and customer facing organization than maybe we have been over the long haul. So, with that as sort of a backdrop, I'd like to to acknowledge, we have been through a number of transformations at Micron here over the last, 5 or 6 years. And I think that has helped lay the stage for, for great things over the, over the years to come. I wanted to start by acknowledging, that if you go back 4 or 5 years ago, fact, 6 years ago, none of these partnerships here existed at Micron. So, you look at, at, the importance of IMF, T, IMFS, our relationship, a great partnership with Intel in the NAND space, the importance of Innovara, and the relationship, both from a technology development side, as well as manufacturing side with Nania and Formosa in Taiwan. These are really transformational things, for Micron in terms of not only giving us the opportunity to grow our business and grow scale, but also, leverage other people's capabilities, technical, talent and, and, and, market access. So as you, as you move around this, this universe here, a lot of great partnerships, that are, really positioning Micron well for the future. But having said all that, I was particularly gratified to hear. Glenn talk about, the partnerships that's going on, internally to Micron as well. Internal BU to BU, BU to sales, manufacturing the BU. And I think, you know, what that tells you is that this is really a core competency, for Micron Day in terms of our ability to partner, and work collaboratively. And I think that as you, as you think about Micron moving forward into the future, you can you to expect to see, that type of collaboration in an increasing fashion with our end customers. We are also really for the first time today, I think, a truly global company at Micron. And we've had sites for a long time. But the transformation that's happened with the Mnemonics acquisition is really, quite remarkable, on two planes. First is, relative to the decision making and the, the, the global nature we go about running the business today. So, I, I said we imported great leadership. We also imported a lot of great talent around the world, and, we've structured the company to make sure we get the best use of that, and we really take advantage of the fact that Micron is the most global, memory manufacturer in the world. And we have all these great assets deployed around the world that can contribute parts of the team, do business around the world. The second is, we also bolted on a whole bunch of new fit and, and, and, manufacturing capacity over the last 6 years, not only with the, with relationship within Oterra, the new manufacturing facility in, in Singapore, but also with the acquisition of, the new manufacturing facilities that came with mnemonics. Many of which, by the way, were in places. We already had a lot of operational experience. Italy, Singapore, China etcetera, but, but, some additional capability, now in Israel and Malaysia, etcetera. So, I want to just walk through 3 of the 3 of the, facilities at Micron that are transitioning in significant ways and give you some insight into what you can expect. Going on in those over the next year or so. The first is our new fab joint venture fab with Intel in Singapore. We call it IMF at or I'm flash Singapore. It's, as we've said before, it's a roughly 100,000 wafer per month capable fab. Chart here, shows you, sort of what that production ramp will look like. Over the next 18 months or so. Right now, we're early into the 25 nanometer ramp. We've seen, a good silicon, out the fab already. I think I would characterize this ramp as going, better than we expected and better than really we had any right to it's really been a, a great validation of, the technology transfer methodology we put together and the resources we, we put together to really spread technology to our fabs globally. And it also I think is a testament to the, to the great job that the, technology relationship with Intel, has done the JDP as well as the management team at that joint venture in terms of getting the folks trained and installed. But, you know, what you see on curve here is that we'll really do this, this ramp in 2 phases. The first is, is, going to take, take place throughout 20 7 and coordinate with a roughly 60,000 wafer per month, output, near the end of the year. That'll be primarily on the 25 nanometer node, but you will start to see the, the 2x, 20 nanometer node. I can say 20 nanometer is not 20 nanometer asked, like, some of our competition. This is a 20 nanometer, product. And, you'll see that, the ramp in Singapore this year as well. To give you a sense of how the ramps go, and this is, this is early silicon, offline in Singapore. So, the the blue dots are the all good 64 gigabit, 25 nanometer NANDI. So, if there's any question as to, our ability to manufacture a yields at 25 nanometer, not only in our existing fabs, but also in the brand new fab that's in the middle of ramping, this ought to give you a pretty good sense for how well that takes as the introduction is gone, not only in the new fab, but around the world. Switching tracks, talk a little bit about Innoterra. You're all aware that over the last year, we've been transitioning Inno from a trench, DRAM process to a, micron SAC 15 nanometer process. This, this chart here goes back in time a little bit so you can see how that transition went. We initially took capacity offline, in order to the installation of new tools to support, the stack ramp. Part of our philosophy as we went through this, this was we're going to try and reuse as many of the existing tools as possible to be as capital efficient as possible. And, as we move through that sort of simultaneous development of new processes on a non match toolset. We have HIC from time to time in terms of the capability of those tools, to function, in the Micron process flow. Some cases, we overcame those over time, but with a resulting loss in availability of the tool for manufacturing. In other cases, came, eventually came to the conclusion that those tools were just not capable of doing what they needed to do. So, so we, began the process of changing them out. As we sit here today, we're through that process. We, we still have some, some, tool transitions that are going to go on to continue to enhance the yield profile within Oterra. But in terms of running at full capacity, we are up in the 120,000 wafer per month range now. We were running, not quite mature yields yet. So there's still some runway ahead in terms of, of making those, yield improve as we change out the last of that toolset. But we're also into the 42 nanometer, no transition now. And with the, with the baseline that's been established relative to a, a fun toolset that's capable of running the stack process. We anticipate that'll go, relatively smoothly. And in fact, we're leaning to pulling that ramp in, more aggressively than we had originally planned. So you know, I think, a little bit rocky, earlier than Oterra, but, but we're pretty comfortable, with where sit today and with the prognosis going forward. I wanted to show you the Manassas tab, for, for highlight, just a couple of things. This is, this is a one fab, that runs both NAND and DRAM. And you can see, bottom half of this graph here is showing how the DRAM capacity is roughly partitioned between technology nodes. The upper half of the curve is showing going on with the NAND capacity. Now, we do have the ability with cooperation with our partner, Intel to flex back and forth, but we don't typically do a whole lot of that. Primarily because, it's, it's not the most capital efficient way to run the fab, and we have a lot of, supply for NAND and DRAM other places in the world as well. But what I wanted to show you highlight here was on the bottom half of the graph was going on, really with the DRAM capacity. And what you see here is that the, the, the 50 nanometer DRAM has a pretty long tail. Now, you heard Tom, EV here talk a little while ago about the importance of stability. In, in the embedded space. That's true also, to a, to a slightly lesser degree in the wireless space that those products also are stickier in the sockets. They get designed in. They, they, they stay there for longer in MCP format. So, there's ongoing demand the mobile space for legacy products, as well as even to support our server business, where often they care about having a sticky product. So, the message is that Micron today is not about rapidly transitioning 100% of our capacity no to the next. We're not counting, bits as the primary indicator of how, well, our business is doing. What we're trying to do is align our capacity to the best, opportunities in the marketplace and plan that in close collaboration between the business units, sales and the technology team. So end of the day, we support all these markets that really drive added value, for Micron and added margin into the business. So what's going on in Virginia, the 42 nanometer node is ramping down already. The 3x node, is in the manufacturing fab. And I'll come back to that and give you a little status update in just a second on how that's going. Look at the overall picture for Micron, you get a sense of, of the growth and capacity here. We have going forward over the next year, primarily on the NAND side in terms of, in terms of, new wafers. And that's, again, it's, you know, it's a significant ramp, but we'll go to 60 k, and then I've shaded in here at the top. The second half the ramp on up to, to, to 100 K, which will really be dependent on, you know, market conditions and, and, and in businesses that are yet to be made, exactly, what the timing of that would look like. But I wanted to give you a, a sense of, you know, what's the overall capacity look like. We, we do have, ongoing capacity at 200 millimeters for, legacy applications and products well. Relative to, what does this mean for bits? And again, bits are not primarily are are not our primarily, or our primary, metric today. But if you want to think okay, so what does the sort of overall scale for Micron look like over the next 18 months or so? I think what I would tell you is that on the D hand side, you can, you can count on, low teens, over the next six quarters or so. And that will oscillate quarter to quarter, a low teens compounding, in the DRAM business. And in the NAND business, I think you can count on mid teens. And, within that, that, that NAND output, you will see that over time. And Ron will come back and talk a little bit more about how the output sharing, works with our joint venture partners. But within the, within the NAND space, as we move towards the end of 2012, 20 in 2012. More of that, total NAND production will be Micron trade bits as opposed to bits that Micron sell to, to Intel at a, at a price approximating cost. So, the actual amount of NAND that comes micron, for profit will grow over time. Switching facts and, and giving you a little bit of an on technology. I've got 3, 3 dye, sitting up here, that are all actual, products in silicon today, but I wanted to give you a little bit of an update on. The first on the left is the micron an Intel 20 nanometer, 64 gigabit product. This product is, as I said, running, in manufacturing fab today. We expect to qualify it in the 3rd calendar quarter and ramp it throughout the second half of the year. So, you know, I think just an indication of the continuing technology leadership in, for Micron and NAND, there are, of course, FLC, sorry, 3 bit per cell versions of this and other, enhanced box, supported by this technology as well. But this is the MLC, 64 gigabit die. On the right, the Micron 3x Nanometer DRAM product, this developed with our technology partners, Nania, is sampled already. To customers and is, running in, in, early, manufacturing in the Virginia as I alluded to, that portal ramp, will, qualify and ramp in the second half. Of the summer. And finally, the, the, the, the Nor die, the leadership, nor technology for Micron is 45 nanometer. As, both, both Tom and Mario alluded to, leadership North Technology presents lots of opportunities for us in terms of, of, grabbing market share, in you added sockets, particularly at the higher density, higher performance, pieces of those markets. This part is, in qualification today. We'll initially on 200 millimeter capacity, but will be scheduled for deployment in 300 millimeter as we grow market share and leverage existing capital for that second squeezing of the grapes we alluded to in terms of having a more cost effective way of lessing some of these legacy markets. There's always a lot of questions these days about, what's coming next. Where is where is the memory market going? I want to talk about each and every one of these dots. No, I'm only kidding. I don't don't, you know, I don't want to really focus on, the details behind these various memory technologies. Just give you, give you sense of, there, there are a lot of technologies out there. Mario talked about, the importance of face change, in some of the, market fee addresses. There embedded markets, that use that. There are lots of different types of memories that address other application spaces and have other technology challenges. There's stacks, face change memories. There's, multivalent, oxide memories. There are conductive bridge memories or spin torque worries. What I want you guys to understand is that, that, Micron has been a memory business for a long time. Really, a core strength for us is LNG development. And, we're active, in all of these spaces, not only internally, but in partnership with other companies. And, we will continue, to make sure we're well positioned, relative to the other guys in terms of being, early adopters and innovators, in these spaces as those technologies continue to evolve. And happy to answer questions later. If there's anyone in particular, you, you, you want to know something about, I'm not the smartest I used to be on this stuff, but I'll try and address those specific questions. Finally, I want to acknowledge that while Micron has a, has really a, a, a, a wonderful, relative position in terms of being the only truly global memory manufacturer. We're also the only memory manufacturer that has access to all these channels. Glenn talked a little earlier on about the Lexar channel and the importance of that in delivering performance differentiated solutions. We have the crucial that delivers, products in the e commerce space. We have, a lot of, capabilities relative to, to, distribution from Micron internally, but also with the Neuronix acquisition. And very strong, OEM focus as well. So, as Micron continues to evolve, we continue to evolve and invest in our sales channels, and we'll have a mark up here later on as well to address any questions on the sales channel side. So, yeah, I think I would conclude by saying, we're pretty happy with how we position the company in a capital efficient way with advanced capacity to support technology leadership products, as well as a capital efficient way to support value added products that don't need advanced technology in the same time frame. We have lot of cost reduction runway ahead of us with the technology transitions that that are, just starting to bear fruit at Innoterra and the effective ramp of the new fab in Singapore. We continue to be technology leaders, in in the NAND DRAM and North space as well as early adopters in face change. And, you know, we have the global structure and the, and the, sales channels to really take advantage that. So, I'm going to turn it over to Ron Foster to talk a little bit about financials. Thanks, Mark. It's great to see you all here this morning. I think you've seen great information about, from Steve and Mark and the business unit heads of how we're doing in our business. If you look at, what we're doing in terms of actions, product line expansion across all three technology platforms, now using the business unit focus to help drive, the business ahead and also our owned and JV operating Mark just commented on in terms of helping our business is all putting us in a better competitive position to drive accelerated growth expanded margins and the broader customer engagement as we go forward. You've heard from the BU heads about the progress they're making with customers and products and from Mark and terms of, progress with scale and technology in our business. I'm going to focus, now a little bit on our financial constructs and leverage we're getting in our financial business. If you look at our business unit structure, you've already heard from all We're going to start reporting our business units, going forward as, in our results for the quarter. So, segment reporting and we will be recasting backwards some of our financial results by business unit. If you look the breakdown by business unit. This is our 1st quarter recast, if you will. Revenue. It shows the, DSG, which our DRAM solutions group, is about 40% of our revenue in Q 1. The NAND Solutions group was about 22 percent of our revenue in Q1. Bear in mind that that is, our high volume trade NAND business and also, relates to the foundry business of the product we shipped to Intel at Price's approximating cost. WSEG about 23% of our business ESG 12%. You see that other bucket of that is the, mainly our foundry image sensor shipments to Aptina, our partner, and also involves and includes some of our new business ventures display LEDs and solar. Turning now to manufacturing JVs. As Mark mentioned, we have, several important manufacturing ventures, in the NAND space. We have the I'm Flash Technologies in Utah Venture and the Ein Flash Singapore Venture, that we both engage in in the NAND business with our partner Intel. On the DRAM side, we have a venture within Oterra, and Nania is our partner in that venture. If you look at the, various, activities here, I am Flash Technologies in Utah, the output share corresponds to the ownership in that joint venture. That venture. And, we hit 51 percent of the output share. I'll note that in the NAND joint ventures, we consolidate both these Ventures, IMFT and IMFS in our financial statements. The Anotera venture, we do not consolidate. In IMFT, Intel is 49 percent owner and gets 49% of the output share. In IM Flash, Singapore, Intel has not purchased in our, in our, capital calls recently. And as a result, Micron's ownership is now 78% of that venture. And correspondingly, we will get 78% of the output with about a 12 month lag. So, over the next 12 months, we will stepwise increase our ownership in that venture, reaching 78% ownership of the output by January 2012. Already indicated is that we will be, we, Micron, will have more volume that we can sell at trade margins in the NAND market versus selling at cost, to our partner. On the Endoterra side, Micron has 30% of the ownership and our partner Nania has also 30% of the ownership. And we share the output fifty-fifty on that venture, and get significant scale economies as Mark showed you from the size of that facility and sharing the output, with our partner Nania. Another key aspect of our joint venture relationships is our joint development programs we have with our partners. There significant leverage to our R and D activities as a result of the, the partner funding that we get from these relationships, to is 2010 R and D. The net reported for Micron was $624,000,000. Our partners funded about a third of our total R and activities, giving us that net result. I'll indicate here that DRAM partner funding also includes about 84 $1,000,000 of royalty revenues that we reported in fiscal 2010 as revenue. I've reclassed them here because 2010, we changed that structure where the majority of those royalty revenues are now going to be coming through as credits R and D. So, this is more representative of the cost structure we have, in R and D going forward Another round joint venture of Microns is a techs techsemiconductor in Singapore. We have, we have, been a joint venture with that for number of of that venture for a while, and we've been taking 100% of the output for some time. But now we bought out the remaining, remaining as we now own 100% of the ownership, as well as 100% of the output. What that means is that we will not be sharing some of the profit of that joint venture with our minority shareholders. And as you can see on the graph here, it was about $50,000,000 in fiscal year 10 $17,000,000 in Q1 of this fiscal year that was to the minority shareholders, and now will be retained at Micron. If you look at the balance sheet on the left, we've spent about $59,000,000 to buy out the remaining minority shareholder interest on our balance sheet of 220 $1,000,000. Now, if you look at a little competitive comparisons. It's, it's a real important variable in our business as the balance sheet. As I think many of you know, in our capital intensive, marketplace. And very important on that balance sheet are cash balances and debt leverage. And I want to show you some comparatives here. This is the debt to capital ratio, for the most recent quarter for Micron and Blue. And some of our pure play manufacturers where we can measure the results. And Micron has a lowest debt to capital ratio at about 15 percent in the latest reported quarter. The other significantly higher is they carry significant amounts of debt as they've been going through the last several years. Our normal operating range for debt to capital ratio is about 20 to 20 5%. Another way to look at it is look at the, cash the balance sheet, less the debt on the balance sheet, the net cash position, if you will. And Micron is the only pure play memory manufacturer that has positive cash position. And again, that, that is significantly different than many of our that have a significant amount of remaining debt to deal with. And maybe a better way to look at it is if you take the cash on the balance sheets and ratio that to the current debt due in the next 12 months by each one of the players. Many of our competitors do have enough cash to handle capital investments and working capital. In addition, several of these, producers actually negotiated to delay their payments into 2012. So, they're going to have significant challenges beyond 2011 in their capital structure Turning now to the geographic global nature of our company that, that Mark mentioned expanding our foot significantly. In 2010, 70 percent of our revenue was in Asia, 21% in Americas and 9% in Europe. We continue to grow significantly our, our footprint in Asia in particular. And if you look at our total wafer production by geography, over time, we're significantly expanding our manufacturing presence in Asia. We already have, most of the back end operations in Asia And we are rapidly progressing to where most of our output, in the wafer fabs will be coming from Asia as well. We're taking a number of steps. In addition to this, we are expanding our global operations and manufacturing act in report location. What that means is we will have, significantly lower tax rates in the future as we go forward, and we'll also prolong the time over which we can utilize our existing NOLs in the company to keep our tax rate CapEx guidance for 20.11 is $2,400,000 to $2,900,000. And in there, you can see the majority of it is in our end of ventures, IMFT Technology node transitions being part of it. And, the big notable part is, is IMS in, Singapore. We consolidate these results. So, this includes all the CapEx for our joint ventures of IMFS and IMFT in the numbers. And with that, I'll summarize we're making great progress in terms of cost and growth leverage with our partnerships and increasingly low cost manufacturing around the capital deployment is focused on high growth, opportunities in the NAND market and positive P and L implications going forward. And we have a strong financial position to continue to execute our business. And with that, I'll turn it back to Steve. This one? No. Okay, great. I thought, I was listening to Ron talk about relationship with Anadura and how our output share is related to our ownership and the shares. And of course, my been quite a bit of time on talking about how well they've been doing in more recent times as some of the struggles went through last year. I thought it'd be worth noting was told that we also, the bankruptcy administrator, for Kimo and a typical, I think, lot of bankruptcy measures. They file a lot of lawsuits against a lot of companies trying to recover dollars. We, I was told that we had, that we're, that we're one of those is that they're going to sue regarding our share purchase ownership of Antero, but I just wanted to know that, that has nothing to do with our joint development and our supplying it's with the operation of in Oterra. So whenever that ultimately surfaces, we don't know exactly what it is because we haven't been served with anything yet, but we were told that it it happened. So, anyhow, just worthy of noting, I thought that, in terms of moving forward from here, I would wrap up with a few comments around where the industry is, kind of state of the industry and then focus a little bit on what we see happening in terms of our perspective in a couple of our segments and then having the group come back up for Q and A. So, if you, if you look at the lifecycle of the memory business, both the DRAM and the NAND, I had made this comment to a couple of others that I thought it would be interesting to overlay, how the DRAM looked versus the NAND look in its early years. And so, if you look at this chart, we basically took the 1st number of years of the industry of DRAM. So, in this case, the 1st 10 or 15 years of the DRAM, then we took the 1st 10 or 15 years of the NAND and we overlaid them. Because if you've heard me speak about this topic before, I've always said that I thought that the NAND business was going to behave a lot like the DRAM business did up until the mid to late '90s. And essentially, what I'm saying there is that, there's a lot of price elasticity in May. In other words, we have yet to experience in the NAND industry a backing up in terms of the density and the content that's put in those applications. And we really started experiencing that in the DRAM industry, you know, kind of the mid to late 90s and more time with technology bust in 2000, it had been reset. It used to average 75% to 80% and now it averages around 40 50%. And you actually had some backing up in the content of DRAM and systems out there in the world. And that's yet to happen in the NAND. So, what that essentially trans tend to, is that you still have volatility, but that the excess bids that get created are consumed very quickly based upon the price that they are selling into the marketplace. And so this is an interest in churn. There is a little bit different on scale, but it does turn out. If you plot those, if you plot the movement of this in terms of, the industry, you can see that it's very similar. That in fact, the NAND industry is behaving similar to the DRAM industry in this earlier years. No. This also relates to what happens in terms of expenditures, obviously, because that drives the bid supply into the marketplace. And remember, the bid supply in both the name of the DRAM similar in that they come from 2 components. They come from advancing the technology, a lot of which we've described, and they come from expanding for capacity. Those are the 2 components that add to bit growth. And most of that bit growth that we're experiencing really in the last year that we might expect during the next year or 2 is being driven by advancing the technology. And that's what there's a couple of things that could illustrate here. First of all, if you look at the, this CapEx chart, you can see, of course, in DRAM have peaked in, you know, in 2007 and about 21, 22 and then you can see it bottomed in 2009 around this $5,000,000,000 number got up as high as around $10,000,000,000 and it looks like at least most forecasts on DRAM. Now, I'm just talking about DRAM for the moment. The back's actually going to be going down in 2011. So, it really much of a peak, so to speak, compared to prior peaks, and that the CapEx is actually coming off. The second thing you'll notice is that the NAND CapEx is actually still growing, but as I said, NAND is acting ArcLight DRAM used to act. And when you look at the size of the markets, if you look at the forecast in size of the market, whether it's 2011 or 2012 or 2013, the size of the markets are actually becoming pretty similar, in fact, if you look at some forecast, they don't think that the size of the name in the DRAM market will be will equal each other in the 20 2013 time frame. Of course, that has a lot to do with the fluctuation on the ASPs, but the point being that they're both very large market and you should expect CapEx in those markets to be similar over time as those markets approach each other. Now, what's happening with the Cap tax. In the DRAM world, the CapEx is almost all being spent on advancing the technology. So, not only is it a lot lower than it was in prior peaks. It's also being spent to advance technology as opposed to generating new wafers in I think that's why a lot of people feel objective to the kind of catastrophic, implications that we've had in prior severe cycles, because you don't have the kind of wafer output coming online that we various before. And in fact, if you look at some of the CapEx data that's out there coming from various companies, we do expect 2011 CapEx and DRAM to go because most companies are saying that their CapEx is going to be lower. And I think that's indicative of what's happening in the industry, and I think that's indicative of why catastrophic coming down in terms of demand, in terms of supply. Of course, we don't control the demand cycle and short of something going wrong in the world or the economics in various countries. That of course will have an impact, but we don't have much to say about that. But when you look at the supply side, you know, I think that what some people thought may happen 6 to 8 months ago around a collapse of the DRAM Ministry. In other words, we were going to another multi period or multi year downturn, it's just not materializing. It's not materializing because there's not the kind of supply that I think people also of historically is happening that drive those cycles. And that's why you're getting a pretty mitigated forecast on DRAM bit demand growth for this year. Some people are now even estimated, it might be a little bit lower than what's here. If you look at the DNI industry, the CapEx has obviously gone up and the big growth is higher than it was a couple of years ago. But in comparison to what was happening, a number, you know, 5, 6 years ago, it's still a bit lower in terms of percentage of bit growth. And the other thing that you'll notice from this chart is that, again, a lot of the CapEx is still going into advancing the technology. As opposed to new generation of silicon. There is some new generation of of silicon, if you have a market that's exceeding what you can generate in terms of bits from advancing the technology, and that's clearly what we have, and what we're still experiencing in the NAND arena. So you'll have to have both in order to try to meet that demand, but, but, you know, the highlight here, from the prior chart, the prior 2 charts in this chart is that there's nothing going on that's real crazy in the memory business. In terms of CapEx of what we've experienced in prior periods. So, when you sum all this up, we feel like we a very good footprint in the memory market. You've heard a lot about that. And that's highlighted by the fact that Micron and Samsung are the only two to have the product portfolio that we each have and then everybody else is a subset of that product portfolio as you go down. The that I keep showing this chart over and over. The only thing that's worth noting on this chart is there are some very significant scale differences starting to develop, among us, among the top few of us and the 2nd tier producers in the memory business. And we think that over time, that gap will widen. And ultimately, of course, it'll cost some further consolidation and that the stronger players will be the ones that are left, in this space. And we feel like we've been able to take advantage of the prior cycles in order to make sure that we're one of those that are the most efficient in our capital deployment moving forward. And I think that we've been, we've been proving that we're able to do that, over the last number of cycles. Okay. So, with that, I'm going to open it up for Q And A. I'd like the rest of the team to come up. Yes, Mark, we're working 10%. I said we're going to have him come up today because I know probably a third of you all you really want to know is whether the price is going up or down in the memory business and he's our sales guy. So he'll you'll you'll be able to respond that. Are we short cares? I'll stand. I'll stand. No, I'll moderate so I can deflect all the questions to you guys, and you guys I'll go inside, guys. Okay. It's just Dan Duane. You're tall enough. You can stand back there. Okay. So, it might be helpful if we can the cover on this since we don't need it anymore. That's possible. And then answer questions. If you have a question, raise your hand and get the mic so that the people on the webcast can also hear it. Yes. Thank you. So, Mark, when you mentioned a little your production, I think you were talking about DRAM and NAND production, low teens for DRAM, index teams for NAND over what timeframe were you talking about this? Roughly the next six quarters. Yeah, I think that's probably enough visibility, I'm sorry. I've got it. I've got it, Mike. Yeah. Over the next six quarters, I think we'll average that. And, it'll be, it'll bumpy plus or minus, we try and give you, at each conference call, you know, a guidance for following quarter. But you get much beyond that and the bumpiness is tough to predict. So, that's sort of a compound annual, compound quarterly rate and, and, you know, we'll oscillate plus or minus from there. Okay. And then on your, on your cool little dot technology chart, one of the things that sumped out at me was the, how high risk the manufacturing was for nearly everything on that chart, except for phase change and NAND which had some risk. Yep. So can you comment on that a little bit and maybe your view on the theoretical wall as it relates to DRAM and NAND and how you see that evolving and what are the solutions to the technology in there, but let me see if I can hit them all. 1st of all relative to manufacturing risk. Yes, the, the, the, factoring risk in NAND, it really, just trying to, trying to highlight the fact that, yes, when we get out beyond fund. We've got a 20 nanometer node in manufacturing now. We've got a 1x, coming in some short period of time. I haven't said when that is yet, but in a, you know, in a relatively normal period of time behind the 2 X node. Beyond that, it gets tougher. To scale the existing architecture for NAND. That doesn't mean there aren't tricks up our sleeves and tricks up our competitor's sleeves, but it gets, it won't look exactly like the NAND that we built today, put it that way. If we're going to continue on a, on a floating gate or, or charge trap or disintegrated floating gate type of architecture for NAND, So that's the manufacturing risk there. On, on face change, it's really just a matter of, you know, we have to qualify the part and get it so, so there's some, some risk on phase change until you're actually shipping, you know, high volume product to customers. Never know exactly what all the bugs are, and this is a new technology that, that, you know, we have, as Mara expressed, we have confidence in, but, but until you've done it, there's risk. Beyond that, all those other technologies, you know, they are, they are interesting technologies. They all have, difficulties associated with them relative to, manufacturing and the types that are live mechanisms that really only come out when you're, when you're manufacturing, higher volumes. And so that's why we classify all of those, those newer memory technologies is risky. What did I miss? That's close enough. I'll just put my last one and then give up the mic. So in terms of the short I'm not sure who you have covering the pricing question, but just, you know, if pricing is flat from here based on what you've observed for your quarter so far, what would pricing be doing in your and DRAM business? Thank you. Yes. I'll go ahead, Mark. Okay. On the DRAM front, obviously, we've seen the last couple of weeks. We've seen a bit of a rebound in the spot market on DRAM because of Chinese New Year's, we're, we're not finished with our contract negotiations. Our expectations, though, that they will be, some modest uptick and contract pricing as well, post Chinese New Year on the DRAM front. On the, NAND side of the business, it continues to look pretty, pretty favorable for us. What we're seeing is a lot of higher density packaging, be stable and even go up in pricing, since pre Chinese New Year's. And on the lower density stuff, it's, it's been very strong for us. And so net net on the NAND and DRAM side very favorable pricing trends? I think you also had a question around quarter to date, but since we don't, we don't, we haven't been looking at that call, we've done the analysis on the data and we can tell you that, but we actually haven't been looking at that on that basis. So, I don't I don't think we know what the quarter to date at this moment what would be right for the rest of the period of time. So you just have to wait for us to get to that when we do the earnings release. Other questions. There was one back over here. Steve, you made in the last year a pretty significant change in terms of, your plans for intellectual property. And maybe you could talk a little bit about what your expectations are in terms of the contribution there over time. And, second question in terms of balance sheet, some pretty significant improvements, obviously, the last few years in the balance sheet, cash flow and so forth. Beyond this year, maybe, maybe or you could talk about what your views are in terms of, you know, what are you going to do with all those cash flow? Okay. On the, on the IP front, as you know, there's in the United States, there's a model where you have the trolls of the world, and then you have those companies that actually generate lots of IP, but primarily use it internally, either for their defense or for the advancement of their product and their those 2 models that exist. Micron historically has been the former in terms of wanting primarily use our IP to advance our own product portfolio and then defend our IP and defend our customers with our IP. And I think we came to the conclusion that, some of you know that there's been various efforts to get the patent system really remodeled, so to speak, to a modern era as opposed to where it was 50 or 60 years ago when it got developed, and the patent litigation process to changed and have that hit go through Congress, but that really hasn't been very successful, and given all the challenges in Congress and the changes in Congress, I think it's been to get that accomplished. So, you know, we, we, we, I think, a couple of years back made the decision that we would really have we really have to in the interest of the company and the shareholders, we really have to be on both sides of that model. We have to be a company that needs to monetize our intellectual property, to the extent that it's appropriate, and we have to be a company that also defends our their customers or their IP. And so what, I think what you're referencing is that we've had more monetization of our IP, in the last 2 or 3 years, either through agreements and joint joint licensing projects that we've had or by virtue of just straight out licensing. And we've had both those occur. It's always difficult to predict what that looks like in terms of a revenue stream, for a company like micro, because that's primary focus. But suffice it to say if you've seen some of the data that we, you know, that we released, in in time some of the license it was done. I mean, it's 100 of those, the dollars that have been accruing to the company for its intellectual property, we've appropriately monetized that, I think you should expect us to continue to pursue both frankly is that we completely revamped the U. S. System, even though we're currently a big beneficiary of it in terms of licensing, the the system works, but short of that happening in Congress, we're going to continue to pursue a model that, gets us both passed. With respect to a cash flow question. I think it's also worth noting that, as Ron outlined, we've been paying down a lot of and we've had good cash flow and our operating cash flow, particularly, has been pretty good. In fact, we're the only company during the depths of the down only pure memory company during the depths of the downturn that actually maintained positive operating cash flow through the entire cycle. Admittedly, it wasn't a whole lot at that worst quarter, but we still had some. And I think your question is, is appropriate in that. We are going to go through a little bit of lumpiness here. Think in our fiscal 2011, because remember, this quarter that we're in right now is probably the worst of all combinations in terms of, you know, we've been and down debt. We haven't done a whole lot of additional financing, so to speak. And then on top of that, we have a capital, we have CapEx. We've told you our CapEx primarily loaded around IMSF. That's coming online right now. We're spending a lot of money on that. Intel's participation there has been limited as Ron disclosed. And so, we have a big CapEx bill in relationship to cash flow for a quarter or 2, but that's going to go away. I think we're peaking right now, I guess is the way I'd say that and that'll change pretty quickly as we move throughout the year. But having said that, I think, I had noted in the summer that we had a lot of strong cash flow and that we were going to continue to reduce our debt. I think most people familiar with what we did with the convert buyout and, and, both reducing the shares of that outstanding and reducing some of the debt. I think we're going to continue to keep that as an option for us as we generate cash. And, and, I think that, clearly, we don't want to sacrifice the future of the company, but we're just a lot more conscious around the cash flow to generate. And as I said before, I don't think that the kind of CapEx expenditures that existed in the industry previously in of the DRAM, will be indicative of what happens moving forward. I think the CapEx requirements are going to be a lot less, in that part of our business, and that'll obviously be reflected in what I think a lot of you term is free cash flow for the company. That was a question that was right up here. Yeah. Mark, I believe you touched on, the favorable yields you're getting in the 20 nanometer generations of NAND flash right now. I was wondering if you could talk about endurance of those generations in the 2 bit per cell and the 3 bit per cell MLC and maybe how some of the end market applications or looking at those endurance factors, meaning is there a difference between SSDs and the embedded space? Sure. You know, actually, first of all, clarification, I talking about the 25 nanometer node, the 20, we, we are in a position to start sampling that shortly, but we have actually ramp that yet. I think, I think maybe that's a good question for Glenn, actually. Glenn, you want to take it? Go ahead. It takes me a second to go through. Yeah. Michael? Okay. Yeah. You know, the, as we move to the next note, I mean, this is one of the points I was trying to raise earlier is that it is getting increasingly difficult to deliver that same endurance and data retention as you scale. The way we are achieving that is we are adding a substantial amount of, error correction and signal processing techniques to continue to deliver and beyond, but that's going to be become increasingly difficult. So, so, on the 3 bit So, was the question relative cycling performance? Or Yeah. And then the marketability, I guess, of that. Are we going to see that rolling into retail cards or is the market ready for it because there's obviously a huge elasticity of demand equation. So, we have a 25 nanometer 3 bit per cell product. In, in, in development that we'll roll out later this year. We have a 34 nanometer park, in the marketplace. And the dynamics, I think I talked about this last year. The dynamics that market are really such that, because of the, of the performance differential for 3 bips per cell versus 2 bips per cell, the market actually driving about a 20 So, so that, that 3 bit per cell does address a piece of the market, in particular, the card market, the USB space, etcetera. But it's a relatively small piece of the overall. And it's, and from a margin perspective, it ends up being roughly a neutral. So we want to be in that space. We want to, have a product that, that makes sure that the margins there are not, something that's, attract for our competitors and we're not participating. But in terms of an overall strategy, in terms of how we deliver value to our customers, we don't think it's a, a, a big long term impact. Do you want to add anything on? Yeah. No, I think that, to that point, I mean, we can use that controller horsepower that we have to push 3 bit per cell as far into those more premium markets as possible. One also follow-up question. With regard to your placing yourself side by side with Samsung as the only complete vendor in the market, there is one key differentiator in that they're a foundry manufacturer. Is that something you need to consider in terms of delivering complete to your OEM partnerships that you're increasingly talking about now? We I mean, we clearly have contemplated that over time. I think that one of the objectives that you that one of the nice things about the foundry business is that it allows you to operate on that model that, Tom Eby was talking about, which is leading edge and legacy edge or training edge because then you can utilize your facilities entirely for that. I think that Samsung I mean, they have such a large amount of capacity that it probably really helps feel that void on that capacity that they have in trying to get an extended life out of that. Now, it may have further objectives as well, but for us, that would be the primary driver item. We don't have to have that in order to have the strategic relationships that we do in the customer base. It's an interesting scenario where you have Samsung actually threatening the foundry guys in some way. And of course, competing with my entire career. And it's really no different for us. We're used to that, but it's a different scenario, I think, for other players in the market. We don't view that as necessary for our model to be successful. We've looked at it over time because we wanted to be able to see if there was a way to extend the useful life our technology and our equipment. But we have a model now, that was just described that will allow us to do that and do it with products that are really internal to our development. Question, go ahead, Bill. A couple of questions. The first one is relative to the LED market. Would you please discuss, kind of, what it is that you think you can, can bring to the tables to that market and, and, and how you would foresee that developing. And, and I guess even in light of, of the, the number of non things that Micron has tried over over the years and and how that affects your mindset. And and the second question is, is relative to your competitors or Ron mentioned the, the, the, the debt issued, and, and, and, Steve, you mentioned what appears to be a bit more rational all CapEx, mindset. Do you see the, the competitors in aggregate shifting mindset, or are they just simply responding to their financial, constraints? I'll let Mark talk to her story, then I'll that last question. Okay. So, so I could probably talk for an hour on the LAD business and market and, and, you know, very from my employee, competencies we bring, etcetera. But just to keep it relatively simple, we think it's an attractive market. It's going to go quickly. We think we bring, materials, technology, and processing technology that can be differentiated value add both, and I don't want to be too specific about that because we're really kind of in development mode now, but can bring differentiated value both from a performance perspective, as well as a cost perspective. And we think that we have, you know, as this market really starts to take off, we think we have a lot of the manufacturing expertise that the current incumbents don't have in order to build that into a successful business. You wrap around, wrap around that, you know, an approach to the market, that we hope will be more systems oriented and end market oriented, as we're doing in our memory business today. And, you know, we think it's a great opportunity, but we're not spending a lot of time on it yet. As it is an opportunity and we, you know, we want to go walk the walk first. No, Diane, let me follow-up here real quick with, second question. And just to add to what Mark said, I think you also had a question around what's our mindset around some of these things that are non memory oriented and how this will have been previously affect there's no question that we some of the things that we've done historically that were non memory oriented, then materialize what we thought they would for the company, although we didn't spend great amounts of money on them. But it's also true that, as an example, the CMOS imager, because that's the most recent, large example, I think, that comes to people's mind. Remember, we're still making all the CMOS imager. And if you were to look at cash flow generation. There's no question we've extended the useful life of that equipment set on 8 edge to on those, and it still generates cash for us. So, you know, we have the, we have both of those things to consider, but just because historical perspective doesn't mean we shouldn't make sure that we're looking at those things that are large, that could be large silicon consumers because, if you look the evolution of the of the Silicon World, what's quickly happening is that other than the analog guys, which even then, I think, over time, you'll see industry restructure too, but, excuse me, other than those guys, there are really 2 kinds of companies that are left. Those companies that make a lot of silicon and those companies are an ante that having somebody else do it for them. And that's why you have the continual growth of the TSMCs and no global founders now, etcetera. It's because there's an increasing need what they offer, and that's those companies that, they just can't be in the Silicon Manufacturing business because of they don't have enough demand or enough size to do that. And so, those to consume a lot of silicon, solar, LED, CMOSimeters, by the way, those have peaked our interest in in terms of making sure that we've explored the opportunity in those markets for us as a company so that this is not discounted, in so if there is an opportunity, we could take advantage of it. As Mark already mentioned, we're not deploying lots of capital, but we are trying make sure that we develop technology long enough to see if we have a competitive advantage because the requirement for us to actually enter any of these market markets is to have a competitive advantage. In fact, if you look at what we did in the CMOS imager business, the reason that we went into the CMOS imager business as we truly believed that we, by taking a memory centric approach, that we could develop a more competitive, sell, for capturing images that anybody else could do in the world. And in fact, we did. I mean, we were the most competitive and we had the best pixel in the world. And in fact, we were the ones that convinced the world that you didn't have to have CCD in order to get all the capability that you wanted, you could do it with a CMOS imagery device, okay? And so, we want to make sure that we look at those. And we're not going into something if we don't have a competitive advantage, but we have to first explore that in development and technology. Now, on your your second question or what's going on competitive in the marketplace? I think there's consolidation, in fact, in a discussion and an owner discussion, I think it feels like some in the memory industry were in slow motion. In other words, people forget there really were 45 or 50 of us that made DRAM. Has developed DRAM technology and today there's really 4 of us. And but it feels like it's all happened in slow motion because it's a slow period of time because I get question that, gee, what's changed? I mean, nothing seems to be changing to cut it back to the same old thing. I think that's a mistake to take that perspective. When you see what, as I mentioned earlier, what's happening in CapEx and DRAM right now, I think most of us, the large ones, the ones that have to take portfolios like we do. So think that that warrant is not over, but pretty much been fought, okay? And yes, there'll be some more consolidation. Everything that's going on to warrant think you saw, many of you saw that Powerchip and ARRIS, they're going to get out of the DRAM business and branding, and they're going to try to supply probably LP there for as they have a useful life of that equipment set. When bonds essentially disappeared, you know, ProMOS is kind of right on the edge help beat us trying to figure out how they fit in the scheme of things. But the reality is that I think most of the DRAM battle has been lot. And I don't think you're going to get any new entrants in the DRAM business, at least not in the foreseeable future. And so you're also seeing that being affected in how companies are approaching that, that business. This isn't, you know, it's not a war right now, market share and scale because there's only a few of us left. And I think most people can see how they how it's going to culminate here at the end point, which is it'd be probably 3 of a slap. And then, so then you switch over and you look at the NAND space and think that NAND has really been an interesting phenomena. I mean, we are all red. There's only 4 developers of NAND Technology in the world. And you have a couple of companies on the periphery trying to do a things. But the NAND industry is already today where it took the DRAM industry 30 years to get to. And so it's a little hard to predict what happens there. And yes, there is still, I think, a battle for who's going to dominate that space because it has incredible price elasticity. The growth rate is still 80% or 90% per year. And you have to have capacity and technology in order to do that. The scaling issue may affect how that ultimately plays out, but that's another hour discussion. On how that happens. But I think, what you're seeing in the NAND business today is a little bit different than what's happened in the DRAM business. But keep in mind that there are many of the same players, most of us are the same players. So it still hasn't up, but I think those are the dynamics that are impacting what's going on right now. Another question back in the quarter here. Mark, you mentioned 300,000 wafer per month capacity right now. What's the split between DRAM and NAND? And, Steve, you're focused on cash flow. Another industry is rationalized, you know, pricing is advertising margins published, tablets, what's the sustainable free cash flow for the next 1 to 3 years that you're targeting? Thanks. On my man capacity, let me just do the math in my head here quickly. It's roughly, Roughly, 100,000 wafers a month of the capacity today, for Micron is NAND. And we split that today, roughly fiftyfifty with Intel. And it's, and, my mic, back to working. Okay. And, it's almost you're going to grow, gradually happening in IFS pretty dramatically here in the next 12 months. In terms of projecting free cash flow 3 years out from now, you're going to have to get someone but at the meet to be able to do that. I think that, as I said, I think that, So it's I equated a little bit to Ron's discussion around our carryforward losses. What's interesting is, and again, this is feet of story earlier from earlier, but, I sat there with our accounting people, our external auditors, this is probably about this is before Ron was here, but or 6 years ago. And we had accumulated losses because everybody knows we had a pretty tough 10 years. And, yeah, we've been saying we think the next 10 years is going to be there in the last 10 years. The last was pretty bad. And, this is about 5 or 6 years ago, and we had accumulated net carry forward losses of, I don't know, what it was, a few 1,000,000,000 dollars. And, the and we had been reserving those according to the accounting treatment. Process. And, they said we, we're going to make you, you know, you've got to write those off. You can't carry those as an asset anymore. As a deferred asset. You have to write them off. And, you know, I said, oh, great. I mean, we're gonna have to write off, I don't know, a $1,000,000,000 or whatever it was can hit our income statement. And then the reason is that we don't think we've come to the conclusion that you will not be able to use those anytime in the next 20 years. And I think that's a little bit reflective of how a lot of people thought about the DRAM industry, that there was just no way that we'd be able to use those having accumulated them. And what's interesting is other than what we accumulated in the very most recent cycle, okay, we've used all of those prior ones now. Okay. So our carry forward gone from the prior periods and only what was generated in this month's severe economic downturn and really kind of this late 'seventy eightnine period is what we have left. And that's why Ron talked about trying to make sure that we do the right things as a corporate structure to try to have those for use going forward by addressing the way that we deal with taxes around the world. And it's a little bit I think so I can't give you an answer around cash flow and free cash flow But I think that, we believe, as a leadership team, that our cash flow is in the next 10 years a lot better than it was in the last 10 years. And it'll be a lot better in the next 3 years than it was, obviously, in that period of term time when we had a pretty difficult environment. So, I guess, that's the way I would characterize it because I can't give you more granularity in that given that continue to evolve. Outright. Okay. Go ahead. Thanks. My first question is either Steve or Ron, just given the change to the new business unit structure and all the other moving pieces such as, continue to go after high business and also going to regaining share in embedded markets. How should we look at, in terms of the most pertinent financial metric for gauging your progress, is it gross profit dollar rev, operating margins or cash generation, if you can help with that, that'd be, Yeah. Well, I'll let Ron take a shot at it, and then I'll jump in. Sure. Well, I think in our business, we are, obviously very intensive. And so cash flow is going to be king, always. But when you look at the breakdown of the pieces, as I mentioned, we'll be reporting by business units going forward. And there's a pretty different structures and various pieces of it, but they all have their, their, their benefits. For example, as you heard from, Tom and embedded solutions group, we, we enjoy a significant stability at relatively high margins in that marketplace. Obviously in the, in the high volume DRAM and NAND marketplaces, the pricing movements there affect the, the cash flow and profit generation in those business but you have a chance to see how those profile over time. My observation now is if you look at the, at the 4 business units, they are, they have, significant contributions to the profitability and cash flow of the business and the leverage across them and across our infrastructure and was already mentioned in terms of our, factory capabilities and getting a longer life on our, on our assets, all are going to help leverage our structure going forward. So just one layer to think about what on top of what Ron said. Way that we are by these major efforts in these business groups. And the reason that we, the reason that we will end up reporting that way is because that's how the that's how we look at the company, not because we think that that's, some other external force that, that we want to record that data to try to show pluses and minuses externally. We want to measure the company. I want to measure the success of army ship team, based on these metrics. And that is, in these, in these business groups, whether they're market oriented or technology oriented, are we succeeding or against our competition. Remember, one of the challenges that we have as a U. S. Public public up in, I've said this before in the DRAM world, I mean, we are last company in the Western world. I mean, we're it. There's nobody left except us in the Western world. And we have and some may this, but I think that we're held to a higher standard of disclosures. And as a result, we're constantly trying to balance giving information to our competitors. And giving information to our shareholders so that in order to meet their needs without trying to damage the company competitively over the long term by giving information to our Most of our competitors that don't have them, all of our competitors, they don't have this issue. They tell you what they want to tell you, not what they have to tell you, and they don't tell you what they don't want to tell you, or what they don't tell us. So they don't disclose in the same way that we do. And that's a challenge that we're constantly trying to balance. But with respect to how we're trying to run our business, we all really try to run the measurement of our business with full P and L based on these business groups. And I think that we're going to, as mentioned earlier, we will provide data to try to help people build models around the all kind of a bit, you know, ASP, calculations a lot of people run through. But frankly, that's not how we're that's not how we are going to look at our business. We're going to look at our business based on the success of these business groups in those market segments those market technologies. And then just one last question for Ron. Can you remind us what the magnitude of the, I'm missing a course cost might be, as it flows through, you know, the R and D lines, it's outgoing. Has it ramps? I'm at Singapore. What time do you start up costs? Oh, start up costs. Well, I don't have the exact number for you, but right now, we don't have any production coming out of IMS, so they're all recorded as idle costs and going to our cost of sales. And, that's, that's a a fairly stable level right now in terms of our P and L and has been for a while because we got most of the, people on board, etcetera, and we're all trialing production. As we get qualified parts, then we will, move that into production. We'll the products, etcetera. So, that will start happening at the end of this fiscal year. You'll start seeing the switch to where we're towards the end of this fiscal year, switching over to qualified product, we'll inventory the material and ship it out. But the idle costs, run-in the tens of 1,000,000 of dollars, 2, 2 or 3, 20 or 30, I'd say. I have a question about your long term financing strategy. And I understand over the next couple of quarters, you have some cash needs, but really thinking the long term, the on recent actions, should we be expecting you guys to be buying back stocks on dips when the cycle turns down as opposed to selling, selling the rally, or is this more of a one timer? A change in fundamental financing strategy? Well, I think we we're going to view our talk. I think in similar ways that most of you or most of your clients or most of our shareholders try to view it as, is it overvalued or undervalued, or is it fair value or another way of character writing that is do you have confidence in the company or do you not have any confidence in the company? And clearly, noted. I mean, we have a quarter or 2 in March a little bit slower. We got we got big CapEx bill, etcetera. And we'll take that into consideration in into our cash flow is what we want to do. I wouldn't characterize what we did as a one time. I think we're going to and look at it and decide whether or not we think we have what is the best use of the capital that we have? Is is it additional CapEx? I've already stated, I don't think the model is going to quite drive what it used to drive, or is it doing something is it retiring our debt, or is it doing something with our stock in terms of buyback? I do think that you should expect us to in either one of our long term financing will really, at the moment, have any long term financing needs, right? But I do expect that you should mean, I do think you should expect us to do some of the normal things. We have an ongoing, we constantly have ongoing equipment lease financing stuff that we do. The finance guys are always trying to do, measure, do we deploy cash or the term's good on equipment leasing, etcetera, and so forth. And, you know, we'll just we'll just continue to do that. And that's going to be our approach. And I think that if you looked at it historically and if you look at the metrics that Ron showed you, we're I mean, we're fairly debt, in order to move. We're pretty financially conservative, despite some of the challenges that we've gone through. And I think should expect us to continue to be that way. If we see a good use of our cash or we think that we're undervalued or we think that there's something we should be doing with it, then we'll, then we'll do that. Think at all I don't think you should think at all about what we did, a quarter or 2 ago in terms of taking out the debt in the stock is unusual for us going forward. I think we're continue to look at that. And we really we really are somewhat, debtors. So we you know, we'll continue to probably have that as a mindset. Okay. This is a question for Glenn. In the SSD business, the equation making SSD SSD devices, how far the enterprise, storage hierarchy are you willing to go in terms of building additional portions of appliances, servers, etcetera, to sell this concept? Well, I mean, clearly we're taking a big step in that direction, I think, from our NAND Silicon up to the, you know, what we're calling the systems solution, which is the SSD. Now, there's a lot of more, a lot more innovation beyond that, and that's absolutely something that have to keep an eye on because, you know, we do think that there are ways for us to participate in that in the unique fashion as well. You know, taking a step back, lot of the work that's been done today to get us into the position that we are with SSDs, it's largely been built upon take NAND devices that were created for all those other markets and figuring out sort of how to get them to work in an SSD. You know, when you have that end user sort of visibility. And you can go all the way back into, you know, not just the NAND designs, but even the silicon and really start to about how you deliver a leading edge solution for that. I think that there's some big opportunities. Now, that's down the road quite a bit, for with the near term horizon, it's all about getting the client and the enterprise SSDs going. And that, that's where our focus is. Okay. Hi. So just to follow-up, looking at the, I guess, maturity hump in 2014, a lot of companies have used the open capital markets as an opportunity to, less than the pain of something like that. I know you've batted around several things regarding balance sheet free cash flow. I just wanted to kind of understand how you about in terms of priorities? Yeah. I'll comment and then Ron can add. We've reduced the maturity hump quite a bit, So, I think that, if we think there's an opportunistic time to reuse it further, we'll probably do that. We don't view it where it sits today, actually, in some monumental problem. If you look at it and you look at our in our operating cash flows, the maturity over 20 is greatly diminished from where it was. And as I made a comment earlier in terms of our thought process, which is, there's all these debates around what your level of debt should be. And our debt ratio, as Ron already mentioned, we've historically have run-in the 20% to 25% rate or sitting there at 15% today. I think it just gives us flexibility on how we think about that. But me, personally, just not a big fan of a lot of debt. And so that's probably going to be an overriding psychology as we move through time on how we how we do that, Ron. Yeah, I think Steve covered it well. We took a chunk out of the maturity wall already in 2014 Another thing we've been focused on is getting our higher dilution exposure instruments out of the marketplace. And we've been making moves in the last cycle on that. We're constantly thinking to the earlier question too about what our cost of capital looks like and what the timing is to make moves on debt and equity in terms of overall mix within the range of 20 to 25 percent debt that we normally want to operate. And so, as Steve mentioned, I don't think we have a big concern about that much 30 structure now, but we're continuing to look at our overall, debt structure, our converts, which have equity components, and we want to take some of that out. And obviously, the stock price is has influences on where we think those are going to go in terms of conversion down the road as well. So working that all into the mix, but actually concerned at this point about 2014. Okay. And so 20 to 25 remains the long term target? I don't, we don't really have a target. That's where we've operated historically. I think the finance guys are comfortable with that. It'll really add personnel, but there's as hard. And that's why you shouldn't have to run. Trying to keep the cost of capital down. Yeah. I know. I keep hearing this all the time. What we should be doing. So, and like I said, there's a lot of smart, smart people and tell you how to structure all that and think as long as it's reasonably managed, then we'll be we just want to make sure that we keep our flexibility on how we deal with it. And if there's an opportunistic time period, as Ron already mentioned, it has to do with stock price and what it would take to do something with the debt, etcetera, then, we actually are looking at that every quarter, decide what makes sense us. Probably have, maybe 2 more questions. There was one here and there's one here. We'll take those 2. Thank you. Still, there was a chart talking about your NAND capacity and you're going to revalue the market sometime early next year before you decide on additional capacity, given the fact that some of the equivalent lead times are, have this choice to 6 to 9 months, especially on the nickel side. How does that play into the region into your capacity planning? Let me take that one. I wouldn't say that the time line for reevaluation is near the end of the year. It's something we're looking at constantly. And we do have, we have a large operation, which has stepper needs in lots of different places. And so we try and build flexibility into the overall network as well, look up what Micron's internal needs, what are, the needs at Innoterra, what are the needs at IMSF. And that gives us, you know, I think, the ability to plan that pretty effectively and attachments, but don't drive too long lag. Okay. Last question. Sorry, I'm pulling a couple more in here. So on, just a short term one and then getting back to the production thing again. So in the short term, can you share us any color in terms of the near term demand environment? What's going well? And have you, more specifically, have you seen any impact because of the chipset recall? Mark, sure. Overall, I'd say that, the demand profile around the higher end of the mobile phone, Marcus Smartphone, continue to be very robust. And as you've seen in today's presentation, the portfolio matches pretty well to what we're, going to market with. Secondly, I would say that the consumer looks like they're getting back in having a little more confidence in spending. Overall, retail has been more favorable weather thought going into Christmas, even post holiday. The networking and server business for us has been remained strong. So I would say that, in general, the demand has been more favorable than we might have forecasted going into the holidays. Coming out of the holidays, we feel pretty good. And we also think obviously there's supply issues going on, around the DRAM side of the business and how people are positioning for the back half of the year. And the question on, I believe you're referring to the Sandy Bridge announcement a while back, from Intel. We were watching as well, but we have seen zero impact from that. In mind, when you think about a transition like that in the industry, the customer buying the older technology or winding down their inventory too. So there was an inventory lag at some point in terms of their transition and intels as far as we can sense, they're back on, on step and there was a quiet period in terms of the inventory transition. So, for us, we look as actually more favorable as not kind of going forward. And it's been pretty, it's been showing up in our OEM numbers. Thank you for that. And then just, hey, Mark, using your, your production sequentials, in terms of the growth for NAND and DRAM, if I apply that for the next year, I get something on the order of 70% NAND growth and 11 35 percent DRAM production growth. Is that order of magnitude of what you're thinking and maybe you can share with us your thoughts on market share in the total market? Thank you. Yes, I think it's definitely order of magnitude. I think we at the market growing over the next year in the, in the 45% range on DRAM. We'll probably, when it's all said and done, we'll probably be close market on DRAM. You know, on the NAND side, I think we, we, we, we showed a chart that we thought that might be in the 80% range this year. You know, mid teens, I think, will us pretty close to market there as well. But as I said, when you think about NAND, you also have to realize that we'll be taking a lot our actual for profit, will be substantially more than that as we

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