Micron CEO Says Memory Supply Will Be Much Tighter in 2027 and 2028 Than in 2026

If you buy hardware with memory components, expect prices to remain elevated or increase through 2028.

Micron CEO Sanjay Mehrotra stated on September 30th during the company's fiscal Q4 2026 earnings call that memory and storage supply will be significantly tighter in 2027 and 2028 compared to 2026. This projection comes despite Micron reporting record quarterly revenue of $54.2 billion. Mehrotra indicated that industry demand has strengthened and that even with planned increases in industry DRAM cleanroom space, there is no clear line of sight to supply and demand returning to balance. He noted that more than 75% of Micron's projected 2027 output is already committed to customers. Micron's new Idaho ID2 fab is not expected to begin wafer output until late 2028, suggesting a lag in new capacity. Earlier in June, Micron had expected supply to improve gradually in 2028, but now suggests the imbalance may persist longer.

The persistent memory shortage forecast by Micron signals a long-term demand surge, primarily driven by AI, that is outpacing the industry's capacity to produce chips. This situation is not an anomaly but an expected state for at least the next three years, according to the company's outlook. Micron's commitment of over 75% of its 2027 output to existing customers suggests that new market entrants or consumers may face limited availability and higher costs.

This extended period of tight supply could reshape competitive dynamics in AI development, potentially favoring larger, well-capitalized companies that can secure memory resources. It also puts pressure on manufacturers to accelerate capacity expansion plans and could spur innovation in memory efficiency or alternative architectures to mitigate the impact of scarcity.