Micron Executive Warns AI-Driven Memory Shortage Will Persist Until at Least 2028

Micron executive Sumit Sadana stated that meaningful new memory supply additions will not begin ramping up until 2028, leaving global memory supply unable to match surging AI demand. To address long-term capacity bottlenecks, Micron plans to nearly double its capital expenditure in fiscal 2026 and could exceed $45 billion in fiscal 2027. This prolonged shortage highlights how memory chips are transitioning from standardized commodity components into custom, critical hardware required for AI training, edge computing, and future physical AI applications like humanoid robots. It also drives semiconductor vendors and clients toward multi-year co-design partnerships and strategic long-term supply agreements similar to custom ASIC models. Advanced DRAM manufacturing involves approximately 2,000 process steps and requires a full five-month cycle from wafer fabrication to final delivery, preventing rapid capacity scaling. Additionally, Micron has increased its long-term US investment plan to $250 billion, with its Idaho ID1 fab scheduled to yield initial wafers in mid-2027 and its first New York fab targeting output by 2030.