News
Micron memory supply for 2026 is fully sold out despite meeting only two-thirds of market demand
Friday, December 19, 2025 at 01:55 PM
Micron's COO reported that the company has already sold out of its memory supply for 2026, yet this capacity will only satisfy approximately two-thirds of the projected market demand for that period.
Context
Micron management recently informed JPMorgan Chase that chronic shortages of DRAM and HBM are expected to persist through 2026. Intense demand for AI infrastructure and DDR5 memory currently exceeds available supply, with the company only able to meet 50% to 66% of its major customers' mid-term requirements. This persistent imbalance reinforces a bullish outlook for memory pricing as the industry struggles to keep pace with rapid technological shifts.
To address the gap, Micron has accelerated the timeline for its Idaho 1 facility to mid-2027, but physical constraints will prevent a rapid production ramp. As a result, JPMorgan analysts anticipate that DRAM average selling prices will climb by nearly 60% in 2026. With competitors facing similar bottlenecks through 2028, the market is entering a prolonged cycle of supply tightness and sustained pricing power across the semiconductor supply chain.
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