>>live from San Francisco. It's the Q covering Micron Insight 2019 to You by Micron. >>Welcome back to San Francisco, everybody. We're here. Appear 27 covering the micron inside. 2019. I'm David Lot day with my co host, David Flores. Sanjay Moreau chose here. He's the president and CEO of Micron. Sanjay, great to see you again. Good to >>see you, too. >>I love the show because you guys are a highly technical company. You get you get down in the weeds and talk about nano meters and cycles and things like that. But we're here talking about technology, how it's changing people's lives. I mean, you see, that is your mission. So tell us a year on what's new from this >>event. You new at this event is so many new products that we announced today. You know, you see, Micron, I'd like to say that my clone 41 year old, but it has a new heart beat and you see that new heartbeat coming through New innovations, new products, you know, several new solid state drive solutions. Breakthrough speeds portable. SSD renounced our tent, a security solution as well as demonstrated test platform a platform for deep learning algorithms to be applied, enabling influence at EJ. So you see my front continuing to focus on driving high value solutions, engaging deeper with the ecosystem, engaging with our customers to understand what are the main points off the future and bringing innovative technology solutions. And, of course, during the course of last year in a while it was a year where memory pricing went down substantially because of some excess supply forces demand. But my crone, actually in that year produced the second best year in the history of the company. And during the year, he also had the second best year for free class cash flow for the company, >>about $13 billion in nearly 12 months. I want to get into some of that. But before I do our industry and you know this well has marched to the cadence of Moore's law for decades and decades of that has been the innovation engine. It no longer is. You talked about that on your panel today, the innovation engine is now data applying machine intelligence and a I and machine learning to that data scaling with cloud. Now the edge comes into a whole new innovation cocktail. I wonder if you could comment on that in terms of what it means for your business. >>So, yes, in terms of innovation, challenges you to Morse law scaling, but also the workloads that are there today, driving the eye of the future required, nor the solutions of yesterday. They require new, innovative architectures. I like to call them be spoke processors like you have a new custom suit for that fits a particular individual. Now baseball processors that actually meet needs off the specific workloads. But what is important is that as these new innovations, new architectures proliferate through the ecosystem. Memory and storage is key because the trends off the eye, after all, are about drawing deeper insight and creating greater value from all the data that billions of devices the coyote devices are creating around the world. So tremendous support unity for memory and storage. We are focused on bringing solutions with Denham with flash that meet the needs of our customers in terms of performance be announced today. You know the highest clocking speed for our ballistics. Dylan. You know, a delight to the gamers, but we also announce new SS D's for enterprise application, we announce a three d cross point x 100 solid state drive with the fastest in the industry kind of performance. So these are the kind of things were focused on. Yes, technology is getting more complex in and, you know, event from 64 layers to 96 layers. And next year, going 228 layers on Dedham side were the first ones to introduce the ones e technology Norden the industry and actually forced ones to start shipping already in production in the industry. This one z dina nor has the smallest feature size. So these are new, exciting things that are happening at my crime. >>I mean, Sanjay's right. They see all these alternative processes going on. You see, cos tech companies building their own custom silicon, right? I mean, >>so yes, way we're seeing these hybrid solutions being put together on dhe, seeing that the rise of new players completely like arm, for example, now taking a more and more important part in that. So But I'd like to just ask one question on three D cross point that that was an interesting one. How you gonna get volume in that is there going to be through working with some of these other vendors? Because Intel have just combined it with The process is essentially, Are you looking at new ways that you can use that at the lower end to get volume up? >>Where's that fit in your overall strategy? >>Certainly, as we said in the memory hierarchy, TV Cross Point fits in very nicely between NAND on one end and Di Dam on the other end city cost point as a persistent memory gives the benefit that it has capacities, ship densities that can be higher than Denham. Yet it has performance that is close to Denham and much faster than then. And it has the persistence, the non volatility that man has as well. So you can imagine with those kind of attributes, it will have exciting new opportunities in the future. But these new technologies do take several years before they become mainstream technologies. This is still early innings for three D plus point technology. Be engaged with the ecosystem partners with the customers in terms of understanding how this will fit in best in terms of their data center applications. This is what we have started working on This is what we announced the product. And we'll, of course, continue to evolve. The road map are pretty cross point technology. I just also want to touch upon what you said that Yes, you do see that compute now is not being just done like yesterday with CP use. Yes, you do have that idea of solutions. Si pues gp used tp use a six and f bjs. And here's some of the social media giants and those tech giants that are driving innovation in various industry segments, including transportation. They have their own silicon, you know, to address their deep learning requirements, and that creates new. Unfortunately, for us, this is what we call putting silicon back into Silicon Valley. Silicon is driving the innovations today that are coming out of Silicon Valley, regardless off world and market segment and Member Lee and storage is very much at the heart is at the center of yours. >>So you know I want to retire about vertical integration and one of my business early business heroes was Al Shugart. When I was a young puppet, i d. C. And he educated me on the importance of vertical integration and his market, which of course, was spinning destroys heads, media, etcetera. That was a game changer for that that you know, emerging company at the time. See gate. How is vertical? What your philosophy and vertical integration And how does it affect your business and your customers? >>So vertical indication enables us to bring value to our customers, bring greater value to our customers. We have a massive scale off manufacturing that is built on a very comprehensive and actually the world's most unique technology platform. Now taking this vertical integration of the technology platform manufacturing scales off, you know, more than six million acres a year and extending it to controller and form their expertise deep packaging expertise to bring high bandwidth Delia memory solutions for data center applications as well. A solid state drives and multi chip manage nan solutions for smartphone and automotive applications. These are just examples off how we're leveraging our vertical integration, extending it into controllers and firmware and packaging and assembly capability to really bring a diverse and expanded product for a full year to the market, do air just the markets needs from cloud to the edge. And now we're extending our work till indication capabilities even deeper from we have gone from silicon two solutions and now going from also silicon. Two solutions to system and software working with customers to understand water, the hardware and software intricacies involved that can help bring out even more power from the memory as they look at, you know, driving their deep learning algorithms for training as well as for influence. I think this is the vertical integration on build on the most unique platform of technologies. Nobody else in the world has Denham, NAND and CD cross point now building vertical indication on this gives us tremendous defense created opportunity to bring value to our cast. >>A troll more value or being able leveraged. I wanna ask you about your business. You mentioned a record number two free cash flow year for you guys. Two summers ago, I listened to you at the analyst, the Wall Street analyst meetings in you. We're very much aware of the demand and supply pending imbalance that was coming. And you said at the time we're gonna manage through that much better than we have. Historically, it reminds me of airlines when you go when you fly now there's no empty seats, so and you've done a masterful job. The stock prices stayed up. Now, granted, you know you've reduced share count. But how have you done that? What is the new discipline that has allowed you to navigate through those icebergs? >>Soviet Full focus on accelerating our technology development. We're focused on making, for example, technology development exploration. I mentioned earlier being the forest to the market with one C D M, which has the smallest feature size, right. That ability to accelerate technology development and deploy it in production to meet our CUSTOMERSNEEDS gives us ability to manage cost reduction ability as well. So Micron has actually in terms of cost reductions on a year over year basis has led the industry both on the same side as well as the NAN site. This has contributed to stronger financial performance of the company. During 2019 there, prices came down due to some excess supply in the industry, and yet Micron, due to its healthy cost position, was able to produce better financial results as well. Another very important element is increasing the mics off high value solutions, infusing the mics off SS D's and Managed man for mobile applications, as well as bringing more high performance memory to the Bennett, did a memory to the benefit of our customers. High value solutions, Cost positioning, technology acceleration. These have bean the elements that will give us long lasting advantage in terms of continuing to weather the potential ups and downs in our industry. And, you know, yes, we're proud of the fact that, unlike in the past, in an environment like will be experienced in 2019 with respect to price declines, Micron would have had media challenges Micron actually delivered, as I said, the second best year in terms of revenues profits as well as free cash flow. And I want to highlight that we narrowed the gap with our competitors. We narrow the gap with our competitors in terms of orbital margin again as a result, off a stronger, more diversified high value product portfolio and our cost reduction capabilities. >>Yeah, and you've also done a great job communicating to Wall Street. So my last question I know you gotta go is around tech for good. Mark Betty of's been really front center on this. You said that are really jar job is to make lives better, because I still say your job is to increase shareholder value as well. Whoa is the CEO who Mrs 4/4 in a row, but then points to tech for good at the same time. New new workers millennials expect checked for good. How do you see those fitting together? What's your philosophy? There >>were very passionate at Micron that it is important for us that we support the communities that be working where our team members 11. Yes, we want to dry for betterment of humanity through bringing the benefit off our technologies and products, you know? And of course, you see your life's changed with the benefit of more memory and storage, whether it is in your smart home or your smartphone or all of the benefits that you're getting from advances in technology today. But we also absolutely have a social responsibility going from customers to communities, really making sure that we had a good corporate citizen. So at my crone, philanthropy is important doing this year. A microloan foundation is matching our team members contributions, and through that through our team member contributions as well as our match, we have given two and 1/2 $1,000,000 to the communities during the course of the year. We have also supported several new initiatives related to stem education as well as basic human needs again in all the countries and sites where micro nasty members. And actually Micron Foundation has given $11 million during our fiscal year 2019 for supporting various causes toward basic human needs, as well as advancement of science, technology and generating and map. And, most importantly, microphone team members more white have contributed 165,000 hours in community giving, volunteering activities, and we are trying to continue to take our engagement with the community to the next level. I considered it very, very important that and our responsibility that is not only about producing best business results, but we need to help our communities and people in need get to the next level off betterment as well. And it's part of there's diversity and inclusion and equality is a very, very important initiative at the company as well. And we're making tremendous progress in that respect as well. That's >>a great story, Sanjay. Thanks. Um I know you're super busy. Get a bunch of customers to see you're an awesome CEO and doing a great job. Really appreciate you taking the time to come on the Cube. Thank you. Thank you >>for being here with you today. >>Fantastic. All right. Thank you for watching. Everybody will be right back with our next guest. Live from Micron inside. 2019. You're watching the Cube?