Micron, one of the world’s largest memory chip suppliers, says the shortage of RAM and NAND flash memory won’t end soon. They attribute this to a surge in demand driven by artificial intelligence advancements.
In their latest earnings report, Micron announced a record revenue of $13.64 billion for the quarter. This number has significantly increased compared to $8.71 billion from the previous year. CEO Sanjay Mehrotra highlighted that companies like OpenAI, Meta, Microsoft, and Google are aggressively expanding their data centers, leading to this spike in memory needs. He noted, “Supply will remain substantially short of the demand for the foreseeable future.”
Demand for Memory Chips Continues to Grow
As businesses race to implement AI technologies, demand for memory chips has skyrocketed. Micron mentioned that plans for new AI data centers have led to a sharp increase in memory and storage needs.
Despite intending to boost production by 20% next year, Micron acknowledges it may still fall short. “We are disappointed to be unable to meet demand from other customers across all market segments,” Mehrotra said. This ongoing shortage could particularly impact PC shipments come 2026.
Future Production Plans and Challenges
Micron aims to start operations at a new manufacturing plant in Idaho in 2027 and plans another facility in New York by 2030. Yet, with the ramp-up in production, they still face the hurdle of meeting surging demand.
- 20% production increase planned
- New Idaho facility opening in 2027
- New York plant set for 2030
Impacts on Consumers and Markets
The constraints in memory supply may affect consumers and industries relying on PCs. Manufacturers may face delays, which could further elevate prices.
Micron anticipates ongoing challenges in balancing supply with a growing demand, especially as the AI sector expands rapidly.
