Micron Technology, a leading manufacturer of memory and storage solutions, is facing meaningful challenges meeting teh soaring demand fueled by the artificial intelligence boom. The company’s CEO recently revealed they are currently fulfilling only half to two-thirds of customer orders, a shortfall impacting both large data centers and, increasingly, consumer electronics. This supply crunch is prompting long-term contracts and driving up prices for essential components like RAM and SSDs, highlighting the critical – and currently strained – infrastructure underpinning the rapidly evolving AI landscape.
Jakarta –
Micron Technology is struggling to keep pace with surging demand for memory chips driven by the rapid growth of artificial intelligence (AI) technologies. The U.S.-based manufacturer acknowledged it is currently unable to fulfill the entirety of RAM orders from its major customers, with supply constraints expected to persist beyond 2027.
According to CEO Sanjay Mehrotra, the company is presently meeting only between 50% and 66% of demand from its core consumer base. This shortfall stems from a dramatic and rapid increase in memory requirements for AI data centers, exceeding the industry’s current supply capabilities.
“Over the past several months, our customers’ AI data center build-out plans have significantly increased projected memory demand,” Mehrotra stated.
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Global supply is projected to remain behind demand through 2026, Mehrotra added, according to reporting from Techspot on December 20, 2025.
The tight supply is prompting many of Micron’s customers to secure long-term contracts to guarantee access to RAM and storage. For consumers of PCs and smartphones, however, the situation translates to rising memory prices. Micron’s struggles highlight the critical role memory chips play in the expanding AI ecosystem.
Despite the supply challenges, the surge in demand is significantly boosting Micron’s financial performance. The company reported revenue of USD 13.64 billion for its fiscal first quarter, a 57% year-over-year increase. Net income jumped from USD 2 billion to USD 5.2 billion, with earnings per share reaching USD 4.78, exceeding market expectations.
Micron attributes the strong results directly to increased DRAM and storage prices driven by the massive demand from AI data centers. The company is actively expanding its production capacity, though these efforts won’t alleviate pressure in the immediate future.
Micron is currently constructing two new facilities in Idaho and preparing a new site in New York. Production from these plants is anticipated to begin in 2026 and 2027. The development of next-generation memory, such as HBM4, is also reportedly accelerating compared to the initial production of HBM3.
Beyond data centers, Mehrotra believes the trend of generative AI – particularly video creation – and the shift from AI training to inference will further drive demand for solid-state drives (SSDs). PC and smartphone manufacturers are also expected to increase RAM capacity to support AI features in their devices.
The impact of the crisis is already being felt in the retail market. DRAM prices, particularly for DDR5, have risen sharply, leading some retailers to refrain from listing prices due to their volatility. A 64GB RAM kit is now costing more than some gaming consoles or mid-range graphics cards.
(asj/asj)
