Memory squeeze set to tighten through 2028, Micron says

The global memory shortage that has driven up the cost of servers, storage and PCs through 2026 will get worse in 2027 and 2028, according to memory maker Micron Technology. “We expect memory and storage supply-demand conditions to be much tighter in calendar 2027 and 2028 than they were in 2026,” CEO Sanjay Mehrotra said in prepared remarks for the company’s fiscal fourth-quarter earnings call. Even with new cleanroom space planned across the industry, “We do not have line of sight to when supply and demand will return to balance,” he said. Earlier industry forecasts had expected the two to return to balance in 2028. Mehrotra added that new plants would not bring quick relief. “Production from new DRAM and NAND fabrication facilities takes time to ramp and gradually becomes more meaningful starting a few quarters after initial output,” he said. Neil Shah, vice president of research at Counterpoint Research, said the outlook means CIOs “will have to be prudent about which equipment to upgrade and which to stretch to maintain cost efficiencies.” Higher prices, less memory On the same call, CFO Mark Murphy said Micron’s “inventory levels and supply remain extremely tight.” Its DRAM …

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