Micron’s Operating Margin by Segment (2016-2022)

This chart shows Micron’s Operating Margin by Segment, across Compute and Networking, Storage, Embedded and Mobile Business Units.

Micron’s operating margin by segment

Micron’s businesses are structured in the following reportable segments – Compute and graphics, server, mobile, SSD and other storage, Automotive, industrial, medical and other embedded. Micron Technology has been an industry leader and primarily operates in market segments such as computer networking, mobile business units, storage and embedded business units.

• Storage Business Unit (SBU) of the company deals in providing SSDs or storage products in both component and wafer forms to clients, enterprises and consumers. The company’s NAND technology offers SSD products at competitive price. Enterprise and cloud SSDs have advanced features of artificial intelligence which offers fast access to data, better performance and cost-effective storage solutions. Client SSDs are used in personal computers with power efficiency and security and replace hard disk drives.
• Embedded Business Unit (EBU) sells storage products to industrial, automotive and consumer markets. It facilitates machine-to-machine communication, transportation and infrastructure in a smart way in the industrial markets. EBU sales to consumer markets catalyses embedded storage solutions for digital still and video cameras, together with home networking. In the automotive sector, EBU provides advanced driving assistance, voice and gestures control in an improved manner.
• Mobile Business Unit (MBU) includes memory products in smartphones with Multi-Media Controller (MMC) and Universal Flash Storage (UFS) solutions.
• Compute and Networking business Unit (CNBU) offers storage solutions to client, enterprise and cloud servers, graphics and networking markets. This unit of the company also claims to the first one to start volume production of 1Zn DRAM, which happens to be the industry’s most advanced node.

The following table followed by the graph show the segment-wise operating income (loss) in the four quarters of 2020-

(All figures in millions)

Operating margin of the segments can be seen in the table below for the year 2020-

There are few takeaways from the statistic. These are:

• Micron’s operating margin is the highest in its Mobile business unit in Q4 2020 with 33.2%, however, this segment has not been consistent enough in the past quarters as it also has a record of (0.2%) in Q2 2020.
• Compute and networking business unit has been the segment showing an upward trend in the operating margin in the past quarters of 2020 and has reached 29.1% by Q4 2020.
• The operating margin of the Storage and business unit segment was (22.4%) in Q1 2020, then rose to 14.5% and 17.5% in the next two quarters of 2020, yet again dropped drastically to (11.7%) in Q4 2020.
• The operating margin of embedded business unit segment has been also falling over the quarters of 2020.

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