Micron High Bandwidth Memory Supply Crunch Extended Projections and Capital Expenditure Plans for 2027
During the post earnings conference call CEO Sanjay Mehrotra focused on the alarming supply crunch. According to Mehrotra, today's industry is facing a supply demand gap, where demand for high bandwidth memory (HBM) vastly exceeds the manufacturing capacity. Since advancing packaging and manufacturing takes time, the current supply crunch will continue for years to come. Widening the global chip industry with the AI shift, the CEO highlighted the topic's long term importance
AI has become 1 of the most significant growth drivers for memory technology in decades, and we are still in the very early stages of this expansion.
Micron estimates the critical undersupply of HBM will last into beyond 2027, and the imbalance of supply and demand within memory will start to ease in 2028. To avoid any further shortages, Micron will spend US$10 billion of capital expenditure in its 4th fiscal quarter to scale up production of HBM, advanced DRAM and advanced packaging capacity. The 5th ranking supplier disclosed its all HBM capacity for 2026 has already been all booked out by its major AI customers.
