Micron Technology (MU) risk factors, 2024 10-K

Risks Related to Our Business, Operations, and Industry

1. 01Volatility in average selling prices for our semiconductor memory and storage products may adversely affect our business
2. 02Our gross margins may be adversely affected by a range of factors
3. 03We face geopolitical and other risks associated with our international operations that could materially adversely affect our business, results of operations, or financial condition
4. 04If we or our customers, suppliers, or vendors are impacted by any of these risks, it could have a material adverse effect on our business, results of operations, or financial condition
5. 05The semiconductor memory and storage markets are highly competitive
6. 06Our future success depends on our ability to develop and produce new and competitive memory and storage technologies and products
7. 07We have commenced expansion of our production capacity in the United States and in other regions where we operate. Semiconductor fabs are complex, capital-intensive projects and require specialized knowledge, expertise, experience, and skill sets to construct and operate
8. 08Our incentives from various governments are conditioned upon achieving or maintaining certain outcomes and the compliance requirements and are subject to reduction, termination, clawback, or could impose certain limitations on our business
9. 09Our business, results of operations, or financial condition could be adversely affected by the availability and quality of materials, supplies, electrical power, water, and capital equipment, or dependency on third-party service providers
10. 10Downturns in regional or worldwide economies may harm our business
11. 11If our manufacturing process is disrupted by operational issues, natural disasters, or other events, our business, results of operations, or financial condition could be materially adversely affected
12. 12A significant portion of our revenue is concentrated with a select number of customers
13. 13Increases in sales of system solutions may increase our dependency upon specific customers and our costs to develop, qualify, and manufacture our system solutions
14. 14Products that fail to meet specifications, are defective, or are otherwise incompatible with end uses could impose significant costs on us
15. 15Breaches of our security systems or products, systems failures, interruptions, delays in service, catastrophic events, and resulting interruptions in the availability of our systems or those of our customers, suppliers, or business partners, could expose us to losses
16. 16Any such event, or the perception it has occurred, may result in significant losses and damage our reputation with customers and suppliers and may expose us to claims, demands, and litigation
17. 17We may be adversely impacted by any of the multiple uncertainties and outcomes associated with the use and evolution of AI
18. 18We must attract, retain, and motivate highly skilled employees
19. 19Compliance with responsible sourcing requirements and any related regulations could increase our operating costs or limit the supply and increase the cost of certain materials, supplies, and services, and if we fail to comply, customers may reduce purchases from us or disqualify us as a supplier
20. 20Failure to meet environmental, social, and governance expectations or standards or achieve our related goals could adversely affect our business, results of operations, financial condition, or stock price
21. 21Acquisitions and/or alliances involve numerous risks
22. 22We may incur restructure charges in future periods and may not realize expected savings or other benefits from restructure plans

Risks Related to Intellectual Property and Litigation

1. 23We may be unable to protect our intellectual property or retain key employees who are knowledgeable of and develop our intellectual property
2. 24Legal, regulatory and administrative investigations, inquiries, proceedings, and claims could have a material adverse effect on our business, results of operations, or financial condition
3. 25Claims that our products or manufacturing processes infringe or otherwise violate the intellectual property rights of others, or failure to obtain or renew license agreements covering such intellectual property, could materially adversely affect our business, results of operations, or financial condition

Risks Related to Laws and Regulations

1. 26Government actions and regulations, such as export restrictions, tariffs, and trade protection measures, may limit our ability to sell our products to certain customers or markets, or could otherwise restrict our ability to conduct operations
2. 27Tax-related matters could have a material adverse effect on our business, results of operations, or financial condition
3. 28We and others are subject to a variety of complex and evolving laws, regulations, or industry standards, including with respect to environmental, health, safety, and product considerations, which may have a material adverse effect on our business, results of operations, or financial condition

Risks Related to Capitalization and Financial Markets

1. 29We may be unable to generate sufficient cash flows or obtain access to external financing necessary to fund our operations, make scheduled debt payments, pay our dividend, and make adequate capital investments
2. 30Debt obligations could adversely affect our financial condition
3. 31Changes in foreign currency exchange rates could materially adversely affect our business, results of operations, or financial condition
4. 32We are subject to counterparty default risks
5. 33The trading price of our common stock has been and may continue to be volatile
6. 34There can be no assurance that we will continue to declare cash dividends in any particular amounts or at all