Micron Technology (MU) Risk Factor Changes

•labor disputes, union activity, work stoppages, or other disruptions at our manufacturing facilities;

•timely complete facility expansions and transitions of products to new fabrication facilities;

•improper use of our intellectual property;

In 2026, over half of our total revenue came from our top ten customers.

We could experience fluctuations in our customer base or the mix of revenue by customer or end market, as markets and strategies evolve.

The loss of, or restrictions on our ability to sell to, one or more of our major customers or in certain end markets, or any significant reduction in orders or a shift in product mix, could have a material adverse eff…

We are increasingly incorporating AI capabilities into the development of technologies and our business operations, and into our products and services.

In addition, AI and the associated demand for memory has been a significant driver of increased demand for our products.

Additionally, AI algorithms or training methodologies may be flawed, and datasets may contain irrelevant, insufficient, or biased information, which can cause errors in outputs.

The use of AI in the development of our products could also cause loss of intellectual property, as well as subject us to risks related to intellectual property infringement or misappropriation, data privacy, and cybe…

Labor disputes, union activity, work stoppages, or other disruptions at our manufacturing facilities could cause significant business interruption and materially adversely affect our business, results of operations, o…

We rely on a large, skilled workforce to operate our semiconductor manufacturing facilities worldwide.

Certain of our employees have formed or joined labor unions, and additional unionization efforts may occur in the future.

A strike, work stoppage, slowdown, or other labor action at any of our manufacturing facilities could cause significant business interruption, including the temporary or prolonged cessation of production at one or mor…

The resolution of labor disputes may require us to increase wages, benefits, or incentive compensation, implement new profit-sharing or bonus programs, or make other concessions, any of which could significantly incre…

We cannot predict whether or when a strike or other work stoppage may occur at our facilities, the duration or severity of any such action, or the extent of any resulting business interruption.

In addition, we have made, and may continue to make, strategic investments in companies within our ecosystem to further our strategic objectives.

•alleged violations of laws or regulations relating to antitrust/competition requirements;

Tax-related matters could have a material adverse effect on our business, results of operations, or financial condition.

While we maintain insurance for certain potential liabilities, such insurance does not cover all types and amounts of potential liabilities and is subject to various exclusions, as well as caps on recoverable amounts.

There can be no assurance of the following:

In the United States and in certain other regions, fab building has been uncommon in recent years.

We and our subcontractors manufacture products using highly complex processes that require technologically advanced equipment and continuous modification to improve yields and performance.

In 2025, over half of our total revenue came from our top ten customers.

We are increasingly incorporating AI capabilities into the development of technologies and our business operations, and into our products and services.

Additionally, AI algorithms or training methodologies may be flawed, and datasets may contain irrelevant, insufficient or biased information, which can cause errors in outputs.

•disruptions to our manufacturing processes from operational issues, natural disasters, or other events;

•acquisitions and/or strategic transactions and investments; and

•protecting our intellectual property and retaining key employees who are knowledgeable about and develop our intellectual property;

We have experienced significant volatility in our average selling prices and may continue to experience such volatility in the future due to a variety of factors, including imbalances in the supply of and demand for o…

Our gross margins are dependent upon our average selling prices, as well as our ability to continue decreasing per gigabit manufacturing costs, which is primarily achieved through improvements in our manufacturing pro…

•increases in capital expenditures, including start-up or other costs associated with capacity expansions;

We operate in a dynamic and rapidly evolving industry where the timeframes for product transitions, facility expansions, production ramps, and supply chain shifts are increasingly compressed.

Our ability to execute on multiple transitions simultaneously, while maintaining supply continuity, quality standards, and cost competitiveness, is critical to sustaining our market position.

Our industry goes through cycles with demand changes that are not fully aligned to the available supply in the market.

In addition to our U.S.

•government actions, civil unrest, international conflicts, terrorism and threats of terrorism preventing the flow of products and materials, including delays in shipping and obtaining products and materials, cancella…

•issues arising from cultural, language or compensation differences, and labor unrest;

We intend to advance our process technology to maintain product leadership and increase bit output per wafer.

Our future success depends on our ability to develop, produce, and supply new and competitive memory and storage technologies and products in a dynamic market environment.

In addition, our ability to successfully introduce new products often requires us to make product specification decisions multiple years in advance of when new products enter the market.

The growth of AI further creates pressure on the semiconductor industry to timely design, manufacture, and deliver semiconductor products and solutions to meet customer demand for computing power and AI infrastructure.

We continue to expand our production capacity in the United States and in other regions where we operate, in large part, to meet expected demand for our products.

Our construction projects are highly dependent on available sources of materials and specialized equipment, as well as labor, skilled sub-contractors, and other service providers.

In the United States and in certain other regions, fab building has been uncommon in recent years.

We may be unable to obtain sufficient future incentives to continue to fund a portion of our capital expenditures and operating costs, without which our cost structure may be adversely impacted and planned capital exp…

Our manufacturing processes are also dependent on our relationships with third-party manufacturers of controllers, analog integrated circuits, and other components used in some of our products and with outsourced semi…

Our operations are dependent on a reliable and uninterrupted supply of electrical power, gas, and water to our manufacturing facilities.

We and our subcontractors and suppliers manufacture products using highly complex processes that require technologically advanced equipment and continuous modification to improve yields and performance.

accelerated computing and AI adoption, which could have a material adverse effect on our business, results of operations, and financial condition.

To stay competitive, we need a highly skilled, global workforce and effective succession management for key roles.

We and many of our customers have adopted responsible sourcing programs that require us to meet certain sustainability, governance, or other criteria, and to periodically report on our performance against these requir…

In addition, external standards for measuring and reporting sustainability metrics may change over time and may result in cost increases, significant revisions to our strategies and targets, or impact our ability to a…

Acquisitions and/or strategic transactions, including strategic investments, involve numerous risks.

Acquisitions of businesses, enterprises or assets, and strategic transactions, such as joint ventures and other partnering arrangements, involve numerous risks, including the following:

Because of the nature of our business, we have entered, and may in the future, enter into restructure initiatives to streamline operations, increase synergies, respond to changes in business conditions, our markets, o…

We may be unable to protect our intellectual property or retain key employees who are knowledgeable about and develop our intellectual property.

•our relationships with vendors or customers, supply agreements and our capacity to supply, or contractual obligations with our subcontractors or business partners;

•cease manufacturing, selling, offering for sale, importing, marketing, or using products and/or manufacturing processes in certain jurisdictions.

The technology industry is subject to intense media, political, and regulatory scrutiny, which can increase our exposure to reputational hazards, government investigations and measures aimed at addressing market and o…

Changes to income tax laws and regulations, or the interpretation of such laws, in any of the jurisdictions in which we operate could significantly increase our effective tax rate and ultimately reduce our cash flows…

The manufacture of our products requires the use of facilities, equipment, chemicals, and materials that are subject to a broad array of laws and regulations in numerous jurisdictions in which we operate.

From time to time, we utilize external sources of financing when needed.

We have incurred in the past, and expect to incur in the future, debt to finance our capital investments, business acquisitions, and to realign our capital structure.

•reduce our financial flexibility and increase our vulnerability to adverse economic and industry conditions;

We have numerous arrangements with financial institutions that subject us to counterparty default risks, including cash deposits, investments, and derivative instruments.

Our common stock has experienced substantial price volatility in the past and may continue to do so in the future.

Although our Board of Directors has authorized share repurchases of up to $10 billion of our outstanding common stock, of which approximately $2.16 billion remains, the authorization does not obligate us to repurchase…

We have a broad portfolio of products to address our customers’ needs, which span multiple market segments and are subject to rapid technological changes.

Although our Board of Directors has authorized share repurchases of up to $10 billion of our outstanding common stock, the authorization does not obligate us to repurchase any common stock.

We have incurred in the past, and expect to incur in the future, debt to finance our capital investments, business acquisitions, and to realign our capital structure.

Our cash flows from operations depend primarily on the volume of semiconductor memory and storage products sold, average selling prices, and manufacturing costs.

•regulatory penalties, fines, civil or criminal sanctions, litigation and other legal liabilities; and

Changes to income tax laws and regulations, or the interpretation of such laws, in any of the jurisdictions in which we operate could significantly increase our effective tax rate and ultimately reduce our cash flows…

We cannot predict what actions may be taken with respect to export regulations, tariffs, or other trade regulations between the United States and other countries, what products or companies may be subject to such acti…

International trade disputes, geopolitical tensions, and military conflicts have led, and continue to lead, to new and increasing export restrictions, trade barriers, tariffs, and other measures, as well as retaliator…

Exposures to various legal proceedings and claims, with or without merit, could require significant attention from our management and could lead to significant costs and expenses as we defend claims, are required to p…

As we continue to focus on developing system solutions with manufacturers of consumer products, including autonomous driving, augmented reality, humanoid robots, AI, and others, we may be exposed to greater potential…

From time to time, we are subject to various legal, regulatory and administrative investigations, inquiries, proceedings, and claims that arise out of the ordinary conduct of our business or otherwise, both domestical…

From time to time, we have because of the nature of our business, and may in the future, enter into restructure initiatives in order to, among other items, streamline our operations, increase our synergies, respond to…

•integrating the operations, technologies, and products of acquired or newly formed entities or strategic partnerships into our operations;

Acquisitions and strategic transactions, such as joint ventures and other partnering arrangements, involve numerous risks, including the following:

Acquisitions and/or strategic transactions involve numerous risks.

Opinions, perspectives, and expectations on sustainability and governance matters may differ amongst our stakeholders and may evolve over time.

•diversion of resources and increased costs to control, assess, and report on sustainability and governance metrics;

•unfavorable sustainability and governance ratings or investor sentiment;

In recent years, there has been an increased focus from stakeholders on sustainability and governance matters, including greenhouse gas emissions and climate-related risks, carbon-free electricity, water stewardship,…

Evolving sustainability and governance expectations or standards or failure to achieve our related goals could adversely affect our business, results of operations, financial condition, or stock price.

Our business success depends on our ability to attract, retain, and motivate key talent.

Intense competition for talent can lead to increased compensation costs.

To stay competitive, we need a highly skilled, global workforce and effective succession management for key roles.

Additionally, AI algorithms or training methodologies may be flawed, and datasets may contain irrelevant, insufficient or biased information, which can cause errors in outputs.

New and evolving laws and regulations relating to cybersecurity, data privacy, digital products, and AI impose requirements for information confidentiality, integrity, availability, personal and proprietary data colle…

Products and the systems and applications that incorporate or otherwise utilize our products are also targets for cyberattacks.

of our suppliers, vendors, service providers, cloud solution providers, and partners have in the past experienced, and may in the future experience, such attacks, which could impact our operations.

In 2025, over half of our total revenue came from our top ten customers.

A significant portion of our revenue is concentrated with certain customers and end markets.

increase our per gigabit manufacturing costs.

Downturns or ongoing adverse conditions in regional or worldwide economies, due to inflation, geopolitics, changes in government borrowing or spending, trade disputes, war, major central bank policy actions including…

Downturns or ongoing adverse conditions in regional or worldwide economies may harm our business.