TECH & INNOVATION

By FedEx | April 18, 2025

One tiny chip – and a global tech boom is born. Semiconductors power everything from phones to cars, with companies like Micron driving supply chain innovation worldwide.

• Semiconductors are the driving force behind all modern technology, from smart manufacturing and healthcare to autonomous vehicles and mobile devices.
• Whether they’re aware of it or not, businesses across all industries are leveraging the technology and power of semiconductors to drive growth and operational efficiency.
• Micron Technology and FedEx have collaborated to use AI to make semiconductor supply chains globally more data-driven, enabling smarter logistics for all.

Semiconductors are the unseen engines of modern life. From the smartphones in our pockets to electric vehicles on the road, these tiny chips are the core of our connected world. They enable virtually all modern technologies, from connectivity to mobility and manufacturing. 

According to McKinsey & Company, the global semiconductor market is projected to exceed $1 trillion by 2030. At the heart of this growth lies the complexity of semiconductor logistics. Semiconductor supply chains are highly intricate, dependent on multiple moving parts. 

For these reasons, we apply the very latest technologies to make supply chains as smart and intuitive as possible in this critical sector. At FedEx, we work directly with semiconductor manufacturers and suppliers like Micron to make this happen.

Micron Technology and FedEx: Integrating digital intelligence into semiconductor supply chains

Micron Technology and FedEx have collaborated to implement new data-driven solutions for the secure, smart global distribution of Micron products. Building on a long history of collaboration, we’re working closely to integrate huge volumes of digital data, including use of AI tools, into Micron’s global supply chain operations.  

Micron is by no means an industry newcomer. The company started working in semiconductor design in 1978, evolving over the last 46 years to offer cutting-edge memory and storage solutions. 

Today, Micron serves all kinds of growing sectors, from data centers, automotive and industrial to mobility and gaming. The company provides an extensive range of technologies that are central to the most impactful innovations of today, including AI and autonomous vehicles. 

The very chips that Micron makes enable the solutions that drive FedEx and Micron’s collaboration. With the rising demand for semiconductors and the importance of reliable global distribution, the US-based chip producer requires much more than just speedy logistics.

A balancing act: Minimizing risk across every semiconductor supply chain touchpoint

To build our custom logistics solution for Micron, we needed to understand the pressure points in their logistics journey. Mapping out how each supply chain touchpoint could impact delivery efficiency and overall business needs was essential.

What challenges do technology companies like Micron need to overcome to ship semiconductors successfully?

Capacity and carrying conditions: Cargo space limitations and supply chain disruptions can reduce shipping capacity and slow down delivery. Odd shaped or larger-size cargo can also be difficult to ship and process, while many shipments are sensitive to temperature, tilt, or vibration.

Network: Cyber and security risks can expose network vulnerabilities, while changes to regulatory or customs requirements add further delays.

Weather events: Man-made and natural disasters and severe weather events all take a toll on the supply chain and add logistical pressure.

Customer expectations: Customers expect status updates, end-to-end visibility and precise delivery windows, all of which need to be accurately communicated while shipments are constantly in transit. Multiply this by thousands of daily shipments to all kinds of locations including manufacturing sites, labs and sales offices – and you have a lot of work on your hands.

Of course, the complexity of the sector means that semiconductor suppliers are not only exporting their products. They’re also importing all kinds of raw materials, tools, machinery and technologically advanced equipment needed to manufacture at scale – adding further complications.

The best semiconductor logistics solutions are custom-made

As one of the largest global producers of memory and storage solutions, Micron has developed an in-house control tower for supply chain metrics, ensuring continuous visibility and reducing manual touchpoints. To further enhance predictive accuracy, reliability, and security with an expanded view of supply chain effectiveness, Micron turned to FedEx.

We’ve deployed a combination of our digital intelligence tools – FedEx Surround, FedEx Visibility Insights, and FedEx Sustainability Insights – to offer a service uniquely matched to Micron’s adoption of AI. These tools help to automate frequently recurring tasks and bring more attention to potentially ‘at-risk’ shipments to improve the recovery rate for on-time shipments. 

Enabled by FedEx Dataworks technology, these digital solutions collect the massive amounts of data FedEx gathers each day from systems, sensors, and scans throughout the global network. This data is then combined with the power of AI and machine-learning tools to provide an expanded view of supply chain effectiveness.

What are the benefits of the FedEx-Micron collaboration?

Micron’s logistics needs are complex, and any logistics collaboration needs to yield outstanding results to drive the business forward. To build the most robust service offering possible for Micron, a full assessment was undertaken to integrate reliability, visibility and contingency into every step of the supply chain.

We addressed those needs by focusing on areas the tech provider identified as priorities, with improvements seen since the launch of these new digital solutions:

Proactive on-time delivery management

Our use of data intelligence provides greater confidence in estimated shipment transit times. Delivery dates are more accurate, and it’s easier to identify shipments with issues that need immediate intervention. 

By integrating FedEx’s predictive modeling capabilities into Micron’s control tower, the logistics team gains more accurate visibility of shipments in transit. This led to a 44% improvement in estimated delivery dates to customers. Additionally, the recovery rate for Micron’s on-time shipments has improved by 27%, and the overall transit time has been reduced by 16%, enabling faster deliveries to Micron’s customers worldwide.

AI in semiconductor logistics

Leveraging AI-enabled shipping tools has resulted in more efficient logistics operations. With access to a wider range of data, Micron gains deeper insights into supply chain performance, which improves coordination in planning and scheduling orders. This, in turn, leads to higher productivity across both manufacturing and logistics operations. 

Environmental responsibility

FedEx Sustainability Insights provides visibility into the supply chain’s carbon emissions. This data enables Micron to track its shipping emissions, empowering the company to improve sustainability practices and reduce its environmental impact. 

A lasting collaboration that drives two-way innovation

Nikhil Kale, Micron’s vice president of External Manufacturing and Logistics, shares, “With Micron’s global footprint of manufacturing sites and customer base, it is critical to have command and control over the movement of product across the network.” 

“Using FedEx Dataworks technology, Micron is able to improve the predictability and transit time of shipments, thus improving the customer delivery experience. FedEx has been a valuable long-term partner for Micron, and we are pleased to pioneer this digital transformation journey with FedEx.”

So, what’s next? Micron and FedEx will continue to jointly develop new data-based solutions and sensor-based logistics technologies. Together, we’re using advanced digital tools to provide high-value insights. By pioneering the use of predictive analytics, we can supercharge the efficiency of semiconductor shipments around the world. 

The smarter our global semiconductor supply chains, the greater strides businesses can take to expand digitally and conquer new markets.