Micron CEO: Memory Supply Will Be Much Tighter in 2027 and 2028 Than in 2026
Micron CEO Says Memory Supply Will Be Much Tighter in 2027 and 2028 Than in 2026
Micron CEO Sanjay Mehrotra warned on the company's fiscal Q4 2026 earnings call that memory and storage supply will be significantly tighter in 2027 and 2028 than in 2026. With record quarterly revenue of $54.2 billion and over 75% of 2027 output already committed, Micron sees no return to supply-demand balance. DRAM prices jumped in the high teens last quarter, NAND about 30%, and new fab capacity won't arrive until late 2028.
Even with additional industry DRAM clean room space plans with robust demand trends, including new upside requests from customers, we do not have line of sight to when supply and demand will return to balance.
- ocd
I'm not a business guy, but I think I would be very worried if I created any opening (even on the very long term) for competition to justify itself being built up to meet demand (or national security requirements of other countries) on an industry I mostly control, because I prioritized extremely high prices for a few years that might have the effect of changing the arithmetic for potential competitors that wouldn't have done it before.
It makes me consider whether there would be retaliation in later years against the US intellectual property system in countries other than China. While RAM is a tangible product, the areas it serves aren't really.
- water-drummer
Shovel seller says shovels will be expensive in winter so make sure to buy as many as you can today.
- proxysna
I have huge hopes fox CXMT entering the market and at least offsetting this nightmare. Just this week i've paid ~$1k USD for 2x32G DDR5 ECC, insane.
- twelvedogs
doesn't seem unlikely, i'd probably ask someone who won't massively benefit from people believing that it will be tighter though
- BatchJob
The war on general purpose computing is ramping up. They are coming for your computer....get ready.
- damowangcy
remind me in a few years when the same CEO is writing long post on Linkedin explaining why they need to let go half of the company.
- pjmlp
I guess it is back to the old days, when home computers had the memory they had and that was about it.
When are we getting the wave from REIN (Rewrite Electron In Native)?
- HPsquared
I look forward to memory optimizations in software design.