Micron sees memory shortages lasting into 2028

Micron is warning that the DRAM crunch could persist for years as AI data center demand keeps pressure on memory and storage supply. After reporting record Q3 results, CEO Sanjay Mehrotra told investors that customers recognize supply shortages in memory and storage will take considerable time to improve.

Mehrotra said industry supply is expected to improve gradually in 2028, but Micron still does not know when memory supply will catch up with rising demand. Earlier in 2027, the company announced initiatives to expand DRAM output, including a new megafab in New York expected to be completed by early 2029 and a planned PSMC fab acquisition that would add meaningful DRAM output by late 2027.

The shortage is expected to ease somewhat, but elevated prices may continue to affect PC hardware and upcoming gaming devices. Products cited as potentially exposed include Xbox Helix, PS6 and PS6 Portable, and Valve’s announced Steam Machine.