Micron , one of the world's three largest memory suppliers, is predicting a tough few months for global RAM supplies . In its earnings report released on Wednesday, Micron CEO Sanjay Mehrotra said that "tight industry conditions" for DRAM and NAND flash memory are expected to "continue beyond" 2026 as artificial intelligence increases demand .
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With the rise of artificial intelligence, Micron is making more money than ever as companies like OpenAI, Meta, Microsoft and Google fill their data centers with powerful chips that come with high-bandwidth memory (HBM). The company reported another record revenue of $13.64 billion last quarter. That's a significant increase from the $8.71 billion the company earned in the same period last year.
Micron just shut down its consumer business, Crucial, as it prioritizes much more lucrative deals involving HBM technology, which uses three times more silicon wafers than standard DRAM. That leaves fewer resources for DRAM in products we use every day, like computers, smartphones, smart TVs , and even cars.
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It has already started increasing the prices of DDR5 RAM kits, with other products expected to be affected soon.
“In recent months, our customers’ AI data center deployment plans have led to a sharp increase in projected demand for memory and storage,” Mehrotra said during the earnings call, adding that “supply will remain significantly short of demand.” Micron said these “memory supply constraints” could impact PC shipments next year.
Micron is trying to respond to the conditions
Micron aims to increase production and expects to increase DRAM and NAND flash memory shipments by 20% next year, but that's not enough to keep up with demand.
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“Despite significant efforts, we are disappointed that we cannot meet demand from other customers across all market segments,” Mehrotra said. Micron also expects to begin production at a new manufacturing facility in Idaho in 2027, followed by a new plant in New York in 2030.
