Micron Announces Business Unit Reorganization to Capitalize on AI Growth Across All Market Segments
Micron Technology (MU) has announced a strategic reorganization of its business units to better capitalize on AI-driven growth opportunities across all market segments. The company will transition to four new business units: Cloud Memory (CMBU), focusing on hyperscale cloud customers and high-bandwidth memory; Core Data Center (CDBU), serving OEM data center customers; Mobile and Client (MCBU), handling mobile and client segments; and Automotive and Embedded (AEBU), focusing on automotive, industrial, and consumer segments.
The reorganization will be completed by early fiscal Q4 2025, starting May 30, 2025, with financial reporting under the new structure beginning in the same quarter. The business units will be led by experienced executives Raj Narasimhan, Jeremy Werner, Mark Montierth, and Kris Baxter respectively, all reporting to EVP and Chief Business Officer Sumit Sadana.
Micron Technology (MU) ha annunciato una riorganizzazione strategica delle sue unità di business per sfruttare al meglio le opportunità di crescita guidate dall'IA in tutti i segmenti di mercato. L'azienda passerà a quattro nuove unità di business: Cloud Memory (CMBU), focalizzata sui clienti cloud hyperscale e sulla memoria ad alta larghezza di banda; Core Data Center (CDBU), dedicata ai clienti OEM dei data center; Mobile and Client (MCBU), che gestisce i segmenti mobile e client; e Automotive and Embedded (AEBU), concentrata sui segmenti automotive, industriale e consumer.
La riorganizzazione sarà completata entro l'inizio del quarto trimestre fiscale 2025, a partire dal 30 maggio 2025, con la rendicontazione finanziaria secondo la nuova struttura che inizierà nello stesso trimestre. Le unità di business saranno guidate dai dirigenti esperti Raj Narasimhan, Jeremy Werner, Mark Montierth e Kris Baxter rispettivamente, tutti riferenti all'EVP e Chief Business Officer Sumit Sadana.
Micron Technology (MU) ha anunciado una reorganización estratégica de sus unidades de negocio para aprovechar mejor las oportunidades de crecimiento impulsadas por la IA en todos los segmentos del mercado. La compañía pasará a cuatro nuevas unidades de negocio: Cloud Memory (CMBU), enfocada en clientes de nube hyperscale y memoria de alta ancho de banda; Core Data Center (CDBU), que atiende a clientes OEM de centros de datos; Mobile and Client (MCBU), que maneja los segmentos móvil y cliente; y Automotive and Embedded (AEBU), centrada en los segmentos automotriz, industrial y de consumo.
La reorganización se completará a principios del cuarto trimestre fiscal de 2025, comenzando el 30 de mayo de 2025, con la presentación financiera bajo la nueva estructura iniciando en el mismo trimestre. Las unidades de negocio estarán dirigidas por los ejecutivos experimentados Raj Narasimhan, Jeremy Werner, Mark Montierth y Kris Baxter respectivamente, todos reportando al EVP y Chief Business Officer Sumit Sadana.
Micron Technology (MU)는 모든 시장 부문에서 AI 중심 성장 기회를 보다 잘 활용하기 위해 사업 부문을 전략적으로 재편한다고 발표했습니다. 회사는 네 개의 새로운 사업 부문으로 전환할 예정입니다: Cloud Memory (CMBU)는 하이퍼스케일 클라우드 고객과 고대역폭 메모리에 집중하며; Core Data Center (CDBU)는 OEM 데이터 센터 고객을 지원하고; Mobile and Client (MCBU)는 모바일 및 클라이언트 부문을 담당하며; Automotive and Embedded (AEBU)는 자동차, 산업 및 소비자 부문에 집중합니다.
이 재편은 2025 회계연도 4분기 초, 즉 2025년 5월 30일부터 완료될 예정이며, 같은 분기부터 새로운 구조에 따른 재무 보고가 시작됩니다. 각 사업 부문은 경험이 풍부한 경영진인 Raj Narasimhan, Jeremy Werner, Mark Montierth, Kris Baxter가 각각 이끌며, 모두 EVP 겸 최고사업책임자(Sumit Sadana)에게 보고합니다.
Micron Technology (MU) a annoncé une réorganisation stratégique de ses unités commerciales afin de mieux exploiter les opportunités de croissance liées à l'IA dans tous les segments de marché. L'entreprise passera à quatre nouvelles unités commerciales : Cloud Memory (CMBU), axée sur les clients cloud hyperscale et la mémoire à haute bande passante ; Core Data Center (CDBU), au service des clients OEM des centres de données ; Mobile and Client (MCBU), qui gère les segments mobile et client ; et Automotive and Embedded (AEBU), centrée sur les segments automobile, industriel et grand public.
La réorganisation sera achevée d'ici le début du quatrième trimestre fiscal 2025, à partir du 30 mai 2025, avec un reporting financier selon la nouvelle structure débutant au cours du même trimestre. Les unités commerciales seront dirigées par les cadres expérimentés Raj Narasimhan, Jeremy Werner, Mark Montierth et Kris Baxter respectivement, tous rendant compte à l'EVP et Chief Business Officer Sumit Sadana.
Micron Technology (MU) hat eine strategische Umstrukturierung seiner Geschäftsbereiche angekündigt, um Wachstumschancen durch KI in allen Marktsegmenten besser zu nutzen. Das Unternehmen wird zu vier neuen Geschäftsbereichen übergehen: Cloud Memory (CMBU), das sich auf Hyperscale-Cloud-Kunden und Hochbandbreitenspeicher konzentriert; Core Data Center (CDBU), das OEM-Datenzentrumskunden bedient; Mobile and Client (MCBU), das die mobilen und Client-Segmente betreut; sowie Automotive and Embedded (AEBU), das sich auf die Automobil-, Industrie- und Verbrauchersegmente fokussiert.
Die Umstrukturierung wird bis Anfang des vierten Geschäftsjahresquartals 2025 abgeschlossen sein, beginnend am 30. Mai 2025, wobei die Finanzberichterstattung nach der neuen Struktur im selben Quartal startet. Die Geschäftsbereiche werden von den erfahrenen Führungskräften Raj Narasimhan, Jeremy Werner, Mark Montierth und Kris Baxter geleitet, die alle an EVP und Chief Business Officer Sumit Sadana berichten.
- Strategic alignment with AI growth opportunities across all market segments
- Maintains industry leadership in DRAM and NAND technology
- Strong competitive positioning with differentiated product portfolio
- Streamlined organizational structure for better customer engagement
- None.
Insights
Micron's reorganization into four AI-focused business units strategically positions it to capture explosive growth in high-performance memory across all market segments.
Micron's business unit reorganization represents a strategic realignment specifically engineered to capitalize on the explosive demand for high-performance memory in AI applications. By creating distinct units for Cloud Memory (CMBU), Core Data Center (CDBU), Mobile/Client (MCBU), and Automotive/Embedded (AEBU), Micron is effectively specializing its go-to-market approach across the entire AI stack - from data centers to edge devices.
The most significant aspect of this restructuring is the dedicated Cloud Memory Business Unit focusing on hyperscale customers and High-Bandwidth Memory (HBM). This is particularly shrewd as HBM has become the critical bottleneck component for AI accelerators, commanding premium pricing and experiencing severe supply constraints. By elevating this segment to its own business unit, Micron signals its intent to aggressively compete with Samsung and SK Hynix in this high-margin category.
The separation between cloud and traditional data center customers (CMBU vs. CDBU) acknowledges the divergent requirements and purchasing patterns between hyperscalers and OEMs. This specialized approach will likely enhance Micron's ability to develop customized memory solutions optimized for specific AI workloads rather than generic products, potentially expanding gross margins.
With the reorganization completed by May 30, 2025 and new financial reporting to follow, investors will gain unprecedented visibility into segment-specific performance, enabling better assessment of where Micron is capturing AI-driven growth. This move transforms Micron from a technology-oriented organization to a market-focused one, better aligning resources with the fastest-growing and most profitable segments of the memory landscape.
Micron's market-focused reorganization enhances customer engagement and product differentiation, positioning it for leadership in the AI-driven memory market transformation.
Micron's restructuring into four market-specific business units represents a textbook example of organizational design evolution in response to market fragmentation. Rather than maintaining technology-centered divisions, the company has pivoted to customer-centric units that can develop deeper domain expertise and relationships with specific market segments – a proven approach for premium positioning in commoditizing industries.
What makes this reorganization particularly effective is its preservation of leadership continuity while realigning resources. By appointing established senior leaders to head each new division, Micron minimizes transition disruption while concentrating specialized knowledge. Keeping all business units reporting to the Chief Business Officer maintains strategic coordination, reducing the risk of counterproductive internal competition that often plagues such restructurings.
The timing is strategically optimal. With Micron claiming "the strongest competitive positioning in its history" and leadership across DRAM and NAND, this reorganization comes from a position of strength rather than defensive reaction. By completing the transition before the fiscal Q4 reporting period, Micron can establish new performance benchmarks and set growth expectations for each segment as the AI memory boom accelerates.
The structure cleverly differentiates between hyperscale cloud customers (CMBU) and OEM data center customers (CDBU) – recognizing these segments have fundamentally different purchasing patterns, technical requirements, and sales cycles. This specialization should enhance Micron's ability to develop tailored solutions that command premium pricing in increasingly differentiated memory applications, particularly in HBM and specialized AI-optimized memory configurations where margins typically exceed commodity memory.
BOISE, Idaho, April 17, 2025 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU), a leader in innovative memory and storage solutions, today announced a market segment-based reorganization of its business units to capitalize on the transformative growth driven by AI, from data centers to edge devices.
Micron has maintained multiple generations of industry leadership in DRAM and NAND technology and has the strongest competitive positioning in its history. Micron’s industry-leading product portfolio, combined with world-class manufacturing execution enables the development of differentiated solutions for its customers across end markets. As high-performance memory and storage become increasingly vital to drive the growth of AI, this Business Unit reorganization will allow Micron to stay at the forefront of innovation in each market segment through deeper customer engagement to address the dynamic needs of the industry.
Micron will begin transitioning to this new business structure immediately. The transition will be complete early in the company’s fiscal fourth quarter, which begins on May 30, 2025. Micron will report financial results under the new business structure starting with the fourth quarter of fiscal year 2025. The four business units will be:
- Cloud Memory Business Unit (CMBU): Focused on memory solutions for large hyperscale cloud customers, and high-bandwidth memory (HBM) for all data center customers. Raj Narasimhan, Senior Vice President and General Manager, who has led the Compute and Networking Business Unit (CNBU), will lead CMBU.
- Core Data Center Business Unit (CDBU): Focused on memory solutions for OEM data center customers and storage solutions for all data center customers. Jeremy Werner, Senior Vice President and General Manager, who has led the Storage Business Unit (SBU), will lead CDBU.
- Mobile and Client Business Unit (MCBU): Focused on memory and storage solutions for mobile and client segments. Mark Montierth, Corporate Vice President and General Manager, who has led the Mobile Business Unit (MBU), will lead MCBU.
- Automotive and Embedded Business Unit (AEBU): Focused on memory and storage solutions for the automotive, industrial and consumer segments. Kris Baxter, Corporate Vice President and General Manager, who has led the Embedded Business Unit (EBU), will lead AEBU.
All four business units will continue to report to Sumit Sadana, Executive Vice President and Chief Business Officer.
"This reorganization completes our evolution to a market segment-focused business unit structure, with exciting AI-led growth opportunities in every business unit,” said Sumit Sadana, EVP and Chief Business Officer at Micron Technology. “This structure sharpens our ability to partner deeply with customers and build on our tremendous portfolio momentum with differentiated solutions for all end markets.”
About Micron Technology, Inc.
Micron Technology, Inc. is an industry leader in innovative memory and storage solutions, transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.
© 2025 Micron Technology, Inc. All rights reserved. Information, products, and/or specifications are subject to change without notice. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.
Micron Media Relations Contact
Mark Plungy
+1 (408) 203-2910
mplungy@micron.com
Micron Investor Relations Contact
Satya Kumar
+1 (408) 450-6199
satyakumar@micron.com
FAQ
What are the 4 new business units in Micron's (MU) 2025 reorganization?
When will Micron (MU) implement its new business structure?
How will Micron's (MU) reorganization impact financial reporting?
What is the strategic reason behind Micron's (MU) 2025 reorganization?
