Micron signs long-term memory supply deal with Ford Motor
Micron and Ford locked in a long-term chip pact as carmakers race to secure memory supply, with DRAM prices up about 70% since December.
Micron Technology and Ford Motor signed a long-term Strategic Customer Agreement on Monday to lock in memory and storage supply for Ford’s next-generation vehicle production. The deal gives Ford a steadier pipeline for components now embedded at the heart of modern car electronics, while giving Micron another anchor customer as it expands automotive manufacturing in the United States.
Micron is increasing output of key automotive memory solutions and expanding capacity to support long product lifecycles and sustained supply for critical production programs. Advanced DRAM production at its Manassas, Virginia fab is part of a broader effort to localize manufacturing for carmakers.
Next-generation vehicles depend on more memory and storage for advanced driver-assistance systems, infotainment and increasingly software-heavy vehicle architectures. Locking in supply now reduces the risk that a tighter chip market will disrupt production or add cost when new models ramp up. DRAM prices have risen about 70% since December, according to S&P Global Mobility data, with AI-related data-center demand competing with automakers for the same supply.
The Ford pact came five days after Micron announced a similar Strategic Customer Agreement with General Motors on July 1. That agreement covered LPDRAM, NOR and UFS NAND products, following a $2 billion modernization of its Manassas fab that began production earlier in 2026.
Ford chief executive Jim Farley said the future of high-volume vehicle production in the United States will require a resilient supply chain, and he highlighted Micron’s commitment to manufacturing in America, expanding domestic production and investing in a skilled workforce. Micron chief executive Sanjay Mehrotra said the companies are extending their collaboration to ensure a reliable long-term supply of memory and storage as vehicles become more intelligent and data-intensive. The Ford agreement is one of 16 deals discussed on Micron’s fiscal third-quarter 2026 conference call.
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