Micron Technology shifts Silicon Valley offices to San Jose

SAN JOSE — Micron Technology, in a major expansion of its Silicon Valley operations, has struck a deal to lease a big office campus in north San Jose.

The deal is a fresh indicator of the tech boom in the Bay Area.

The semiconductor company, with nearly $26 billion in revenue over its most recently reported 12 months, has leased an entire three-building campus in north San Jose on Holger Way, a complex that totals 541,000 square feet. The deal will enable Micron Technology to shift its local operations to San Jose and exit Milpitas.

“We are taking Micron to the next level,” Sanjay Mehrotra, Micron Technology’s chief executive officer, told a packed gathering of the company’s employees at its current local offices in Milpitas. “Micron is growing its presence globally. We will be moving to an exciting new facility.” The CEO personally announced the future San Jose campus location to the employees, who cheered word of the sleek new offices — and the availability of an on-site cafeteria.

The three-building north San Jose campus had been occupied for some years by Brocade, but that company downsized drastically at that site after it was bought by Broadcom during 2017.

Boise, Idaho-based Micron Technology currently has nearly 600 employees in Milpitas, but the new San Jose offices will be able to accommodate 1,000 of the company’s employees. The move is part of an expected expansion and local hiring upswing by Micron, which has roughly 35,000 workers worldwide. Micron will keep its headquarters in Idaho.

Micron will be able to depart from older, nondescript buildings and move into a gleaming new campus with a trio of landmark buildings.

“These multiple seven-story buildings are visible from Highway 237,” said Manish Bhatia, executive vice president of global operations with Micron Technology. “It’s a very striking site.” The buildings that Micron leased are at 110, 120 and 130 Holger Way, a short distance from the interchange of State Route 237 and North First Street.

The move and expansion comes at a time when Micron Technology has been able to parlay its four decades of expertise in memory devices — the company was founded in October 1978 — into robust profits and revenue.

Over the 12 months that ended in March, Micron Technology earned $10 billion on revenue of $25.86 billion, according to Yahoo Finance. Mobile devices, artificial intelligence and other fast-expanding applications have provided fertile fields for Micron’s chips.

 

Micron Technology hopes to begin moving workers to the office campus on Holger Way in San Jose by the end of this year and anticipates everyone now in Milpitas will be moved in by early 2019. Micron expects to display the company’s name and logo at the top of the gleaming buildings. In addition to the San Jose offices and the Idaho headquarters, Micron has offices in Japan, Singapore, Taiwan, China, Germany and Virginia.

The company plans to occupy the building at 130 Holger Way with all of its current Milpitas workforce, to sublease the 120 Holger Way offices and use the 110 Holger Way site as a data center and engineering labs site. Over time, as the company expands its San Jose workforce, Micron Tech expects to move more employees into the 120 Holger offices.

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“We will be able to provide a great facility for all of our engineers; it will give us room for expansion,” Mehrotra said in an interview after the employee event in Milpitas. “It will place Micron as a prominent brand and a prominent force in Silicon Valley, and help us attract future talent to the company.”

The deal also is a reminder that plenty of tech companies beyond Apple, Google, Facebook and Amazon are in big-time growth mode in Silicon Valley.

The company has produced 40,000 patents during its history, a rate of 1,000 a year, or around three a day. And its executives believe its current crop of chips can place it at the forefront of numerous digital trends today.

“Our solutions are essential for today’s data economy,” Mehrotra said. “The trends in artificial intelligence absolutely rely on Micron’s flash memory and storage products.”

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