Micron and Ford Sign Automotive Semiconductor Supply Agreement

en.Wedoany.com Reported - Micron Technology has signed a long-term agreement with Ford Motor to provide memory and storage platforms for the production of Ford's next-generation vehicles. This marks another step for Micron in expanding its U.S.-based manufacturing operations and serving automotive customers, following a similar agreement with General Motors, including the expansion of advanced DRAM production in Virginia.

DRAM (Dynamic Random Access Memory) is a critical component for servers supporting cloud computing, databases, and AI workloads. According to a report from S&P Global Mobility, DRAM prices have risen by approximately 70% since December, driven by surging demand for memory chips due to increased investment in artificial intelligence data centers. Memory chips have also become a key part of automotive production, as vehicles are equipped with advanced driver-assistance systems and power-intensive infotainment systems, leading automakers to join the scramble for tight supplies of these chips. Micron Technology CEO Sanjay Mehrotra stated that as vehicles become smarter and more data-intensive, the importance of advanced memory and storage continues to grow, making collaboration and long-term supply increasingly vital. The supply agreements with Ford and General Motors are part of the 16 agreements outlined by the chipmaker in the third quarter.