Micron’s CEO says the memory chip shortage won’t end anytime soon. Sanjay Mehrotra told investors that demand for his company’s memory will keep exceeding available supply through at least the next couple of years, according to a transcript from Seeking Alpha.
The shortage affects more than data centers and supercomputers. Because the companies that make memory chips are focusing on building chips for artificial intelligence and servers, fewer chips are being made for everyday computers, phones and other consumer devices.
Mehrotra’s Supply Warning
Mehrotra framed the situation bluntly. “Overall, supply-demand environment is only getting tighter,” he said. He noted that seventy-five percent of Micron’s memory output for 2027 is already spoken for, and most of the company’s current sales talks are about 2028.
He also pointed out that demand for HBM, the high-bandwidth memory used in AI systems, is outpacing demand for Micron’s standard DRAM server chips. That means the limited supply is being pulled harder in one direction than the other.
Why New Factories Won’t Fix It Fast
Micron plans to open new clean rooms for memory manufacturing in 2028. But Mehrotra warned that even then, supply will stay limited. “Even after they are built, even after first wafer output, production ramps up only gradually in the clean rooms,” he said.
He explained that bringing a new factory online takes time. “That’s just the nature of what it takes to bring up production,” he said. He also noted that the shift toward newer generations of HBM, moving from 3E to a mix of 4 and 4E, comes with a smaller return on each wafer. “Node transitions of the future give less productivity gain per wafer as well.”
The Numbers Behind the Shortage
The situation breaks down into a few key points:
- Seventy-five percent of Micron’s 2027 memory output is already accounted for
- Most sales talks now concern 2028 shipments
- Demand for HBM exceeds demand for DRAM
- New clean rooms come online in 2028, but output ramps slowly
These figures show the scale of the problem. Micron is already committed to nearly three quarters of its 2027 production before the year starts, and the company is booking deals for deliveries that won’t happen for more than a year.
What This Means for Buyers
The effect on consumers is indirect but real. When memory chip makers prioritize AI and server workloads, the consumer market gets less of the product.
The shortage is not temporary. Mehrotra’s statements suggest the industry will still be dealing with limited supply in 2028, with new factories only partly offsetting the demand.
Comparing the Chip Types
| Chip Type | Main Use | What’s Happening |
|---|---|---|
| HBM | AI systems | Demand exceeds DRAM demand |
| DRAM | Servers | Still wanted, but not as urgently as HBM |
| Consumer memory | Everyday devices | Limited supply due to factory focus |
The table shows where the pressure is landing. HBM is the hot spot, while DRAM remains wanted but not as urgently as its high-end cousin.
The Bottom Line
Micron’s CEO is not predicting a quick fix. The company is already booked well into 2027, and new factories will not start producing at full speed immediately.
Consumers who rely on devices with limited memory options may find prices rising as suppliers compete for a shrinking pool of chips. The shortage is not ending anytime soon, and the industry’s own timeline shows it.
The warning from Mehrotra is clear: the memory crunch is getting tighter, not easing.
Source material: “Memory executives expect RAM shortage to continue through 2028,” Ars Technica.
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