Ford and Micron Sign Long-Term Deal for Automotive Memory Chips

Ford Motor Company and Micron Technology signed a long-term supply agreement on July 6 to secure a stable supply of memory and storage chips for Ford’s next-generation vehicles. This follows a similar deal Micron struck with General Motors just days earlier. Both agreements are part of 16 long-term supply partnerships Micron announced in its third quarter. Micron is continuing to expand its domestic U.S. automotive chip production capacity, including expanding its advanced DRAM (Dynamic Random-Access Memory) manufacturing line in Virginia. DRAM, a critical component for cloud computing, databases, and AI servers, has seen surging demand amid the recent investment boom in AI data centers, driving prices up by approximately 70% since December 2023. As advanced driver-assistance systems (ADAS) and high-power in-vehicle infotainment systems become increasingly common, memory and storage chips have become essential components in vehicle manufacturing, prompting automakers to actively secure chip supply capacity. Micron CEO Sanjay Mehrotra stated that as vehicles become increasingly intelligent and data-intensive, the importance of high-end memory and storage chips is growing, making long-term, stable supply chain partnerships more critical than ever.