Micron: Supply of memory chips may remain tight until after 2027

At the KeyBanc Capital Markets Annual Technology Leadership Forum, Micron Technology Executive Vice President and Chief Business Officer Sumit Sadana stated that, due to the ongoing wave of artificial intelligence driving demand, the supply tightness in the memory chip market is expected to persist beyond 2027, as the industry's capacity expansion is struggling to keep pace. Sadana revealed that since the release of Micron's latest financial report, signals of customer demand have further strengthened, with the company expecting the supply-demand landscape in the 2027 calendar year to be "tighter than in 2026," and it is currently impossible to determine when industry supply will be able to match demand. Sadana pointed out that for customers, the "primary constraint" lies with the DRAM itself, rather than with power supply, real estate, data center capacity, or logic wafers. He attributed part of the supply-demand imbalance to the challenges and lengthy cycles involved in building advanced memory chip manufacturing plants and ramping up capacity.