Micron Technology Inc.Hub Standard Operating Procedures

Modified Sunday, May 14, 2023

Table of ContentsPurpose.............................................................................................................................................. 4Definitions and Acronyms...................................................................................................................4Receiving............................................................................................................................................ 4

Process flowchart............................................................................................................................4Shipping Documents and Labels.....................................................................................................5

Commercial Invoice.....................................................................................................................5Packing List.................................................................................................................................6Mailing Label...............................................................................................................................63S Label....................................................................................................................................... 7Inner Box..................................................................................................................................... 8

Advance Ship Notification (ASN).....................................................................................................8Damaged Shipments.......................................................................................................................8Timeline.......................................................................................................................................... 9B2B connectivity.............................................................................................................................9

Storage............................................................................................................................................... 9Stock discrepancies........................................................................................................................9Cycle Count..................................................................................................................................... 9Physical Stock and Site Visits..........................................................................................................9

Outbound.........................................................................................................................................10Process flowchart..........................................................................................................................10First In First Out............................................................................................................................10Timeline & Cut off Times...............................................................................................................10Pull Request information...............................................................................................................10Shipment Addresses.....................................................................................................................11Advance Ship Notification (ASN)...................................................................................................11Labeling Requirements.................................................................................................................11Shipping Documents.....................................................................................................................11Inco Term...................................................................................................................................... 11Forwarder/Carrier (if applicable)...................................................................................................11B2B connectivity...........................................................................................................................11Urgent orders/weekend/overtime requests...................................................................................11

Reports............................................................................................................................................. 12

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Inventory Report...........................................................................................................................12Shipping Report............................................................................................................................12Receiving Report...........................................................................................................................12

Return from Hub...............................................................................................................................12Invoices and Fees.............................................................................................................................13

Invoice Details and Requirements:................................................................................................13Operating Hours...............................................................................................................................13

Standard....................................................................................................................................... 13Holidays........................................................................................................................................ 13

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Micron ships product to Hub

warehouse

Product is delivered to the warehouse

Provider visually inspects the boxes for external damage Product is physically moved to good stock storage

Product is systematically processed into good stock

Provider systematically communicates receipt to Micron (via HITS or EDI signal)

Damaged

Notify Micron of damaged parts and wait for further instruction. Put product into “hold” or “Quarantine” stock including reporting.

PurposeThe purpose of this Hub Standard Operating Procedure is to outline the processes and operations expected to be performed for management of a hub containing Micron owned inventory stockpile(s).

Definitions and Acronyms Master container box (MCB): The outer cartons used to pack the inner boxes containing the contents of a delivery. Each MCB will contain one or more inner box.

Inner Box: The box used to pack the products or goods. This box should not be opened at any time.

CPN: Customer Part Number – The part number a specific customer uses to distinguish product. May be different from the Micron Part Number

Contract Manufacturer (CM): A company (or companies) contracted by a company (in this case the customer) to perform manufacturing services for products.

Delivery Note (DN): A number used to identify all of the items shipped under a specific sales order

FIFO (First in First Out): Order for decrementing stock from the consignment warehouse

MPN: Micron Part Number or Marketing Part Number

ReceivingProcess flowchart

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N

Y

Shipping Documents and LabelsAll deliveries will ship with the following documents and labels

Commercial Invoice

The commercial invoice will contain the following information:1. Seller (e.g. Micron Semiconductor Asia Pte. Ltd.)2. Bill To specifies the customer for which the products are consigned for3. Delivery Note No (416659049)4. Micron Part No (MT18JSP51272AZ-1G6K1)5. Customer Part No. (SAMPLECPN)6. Total No. of Packages (5)7. Quantity (500)

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Packing ListThe packing list is placed in a plastic envelope on only the first master container box of the delivery (i.e. the master container box number with combination of delivery number + “A1”, e.g. 416659049A1). This document lists the products, quantity, weight and dimensions. It also includes the ship method, inco terms, and country of origin.

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Mailing LabelThis label includes the ship to and the ship from addresses. One of these labels is placed on each MCB.

3S Label The 3S label is placed on each MCB. It provides information about the contents of a shipment in barcode format. When receiving in shipments, scanning the (3S) PKG ID (package ID) barcode on this label will receive the full quantity (including all inner box quantities) of the MCB.

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Inner BoxThe below label is attatched to each box that a batch of product is stored and shipped in. This label is used to track and process the product. The format of this label may vary depending on which type of product is stored in it; component, module or imaging product. The below example is for a module.

In order to receive product under the inner box number, scan the barcode in the upper lefthand corner. This is the batch ID number. You do not have to scan this label if the 3S Label barcode for the MCB in which the inner box was contained has already been scanned. The inner box also contains the following information

1. Country of Orgin2. Quantity of part contained within the box3. Date Code4. MPN 5. Product Type6. Material Number7. Fab Facility

Advance Ship Notification (ASN)Micron is able to send an ASN via EDI or as an automated e-mail if needed.

ASN (if needed) will include the following information:

Damaged Shipments All boxes are to be visually inspected for damage upon receipt. Damage includes but is not

limited to tears, dents, crushed corners, water damage, etc. If damage is found, notify Micron immediately of damaged product found upon receiving and

include photos of the damage. Continue receiving the product, however put “on hold” or “quarantined” (reference inventory reports) and segregate from available inventory until you receive further direction from Micron.

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Micron will advise either for return of product, or further action to be taken which may include: Opening the outer box to visually inspect the inner boxes for damage. File claim with carrier

[More specific information and process flow pertaining to damaged shipments process may be entered]

TimelineShipments delivered to the hub warehouse should be processed within 4 hours from physical receipt.

B2B connectivityAll receipts should be communicated via HITS or EDI (whichever is applicable) within four (4) hours of the product being physically received. For EDI communications being sent once daily, all product physically delivered more than four hours prior to EDI signal sending should be communicated via EDI same day, otherwise they should be communicated no later than the next day.

Storage[Enter reference to storage in contractual agreement if applicable.]

Stock discrepanciesIf, during the course of business, Micron discovers a discrepancy between inventory quantities being provided by the warehouse and what exists in Micron system. Micron may ask Provider to help investigate the discrepancy. In order to investigate, Micron may ask for any of the following information to be provided in a timely manner:

Stock in/out report on a carton or box basis Stock out report with carton number and customer PO reference Physical count if needed to reconcile with system

Efficient and effective collaboration is expected from provider to help resolve any stock discrepancies that may exist.

Cycle Count[TBD, please enter policy relating to cycle count (if applicable)]

Physical Stock and Site Visits[Insert references to contract if applicable]

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Provider receives pull request directly from Customer, or

Micron

Requested part number(s) and quantity are pulled from stock FIFO

Provider consolidates inner boxes into larger cartons if applicable and relabels according to specifications.

Provider prepares shipping documents for forwarder pick up

Provider scans the boxes to remove systematically from hub stock

Product Pulled

Product physically ships

Provider communicates pull to Micron via HITS or EDI signal (whichever is applicable).

OutboundProcess flowchart

First In First OutProduct should be pulled from stock on a first in first out basis.

Timeline & Cut off Times[Provider to state target estimated timeline for completing above pull process.]

[Provider to provide cut of times to receive pull notice to accomplish same day delivery.]

Pull Request informationThe following information will be provided on a pull request:

1. Requested Delivery Date1. Supplier2. CPN 3. Quantity4. Ship to location Name5. Ship to location address 6. Receiver7. Telephone

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Shipment Addresses[To be inserted here

Advance Ship Notification (ASN)[If required, provider to send an ASN to receiver.]

Labeling RequirementsIf bulk boxes are broken in order to ship quantity specified for the pull, or if the outer carton is damaged, product inner boxes will need to be repacked in a new outer carton and relabeled according to the following specifications:

[Insert relabeling requirements if applicable]

Shipping Documents[Please provide an example of the shipping documents that will be provided with shipments out of the hub]

Micron commercial invoice and packing list template below:

Inco Term[To be inserted here]

Forwarder/Carrier (if applicable)[Specify forwarder or carrier if applicable]

B2B connectivityAll pulls should be communicated via HITS or EDI (whichever is applicable) prior to the product being physically shipped. For EDI communications being sent once daily, all pulls should be communicated the same day the product is physically shipped.

Urgent orders/weekend/overtime requestsMicron may request special service including but not limited to urgent shipments, weekend scope of work, or request for overtime etc.

[Please provide information regarding these value added services here]

ReportsDaily inventory, shipping and receiving reports should be generated daily by system and sent to specified Micron and customer e-mail distribution groups or users at a determined time. The reports should include the following information at minimum:

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Inventory Report Micron Part Number Customer Part Number Total Quantity Available Quantity Hold Quantity

Shipping Report Quantity Micron Part number Customer part Number PO number from customer associated with the shipment Pull date

Receiving Report Quantity received Package ID and or Delivery # Micron Part Number Customer Part Number Waybill Receive date

Return from HubMicron may at any time, for any reason ask for product to be returned to Micron from the hub stockpile. Micron contact will request the hub:

1. Select the appropriate part number quantity and or boxes to be returned2. If for a HITS hub, scan the boxes to a “TOMICRON” status3. Send all boxes to be returned to the address given by the Micron contact with ATTN: RMA

Clerks RMA#_______________.4. Ship boxes within 24 to 48 hours of receiving the return request. 5. Send the waybill # for the return back to the Micron contact for reference.

Invoices and FeesInvoice Details and Requirements:

All invoices should include:o The company name and address to be payedo The Micron entity who will be payingo A description of the services (e.g. hub/ warehousing fees) and identification of which

customer the charges are foro Breakout of the charges by category (e.g. inbound, outbound, tax, etc.)

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o Attached details of all charges listing line items (e.g. shipments in/out of the hub by delivery or carton ID, customs fees per delivery, or trucking per delivery, etc.)

o Agreed upon payment terms per contract All charges should be billed in USD$ Charges should be billed monthly For quickest processing e-mail a soft copy of invoice and attached charge details to

hub_ops@micron.com

Operating HoursStandard[Insert warehouse provider’s standard operating hours]

Holidays[Insert warehouse provider’s differing hours of operation (or closures) during holidays.]

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