Micron. [Reuters]
Micron. [Reuters]

US memory chip maker Micron has signed a long-term supply agreement with Ford Motor to provide next-generation automotive semiconductors. The deal comes days after Micron struck a similar agreement with General Motors.

Reuters reported Monday that the agreement reflects Micron's investment plans to expand its automotive semiconductor production facilities in the United States.

Micron is pursuing broader production expansion, including building out an advanced DRAM manufacturing facility in Virginia.

Automakers have increasingly struggled to secure semiconductor supplies as memory chips are now embedded in advanced driver-assistance systems and high-powered infotainment systems.

"As vehicles become increasingly intelligent and data-intensive, the importance of advanced memory and storage continues to grow," Micron CEO Sanjay Mehrotra said. "This makes long-term supply partnerships with semiconductor makers all the more critical."

According to an S&P Global Mobility report, DRAM prices have risen about 70 percent this year as surging investment in AI data centers drives up demand for memory chips.


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