Micron warns memory shortage will worsen in 2027 as server DRAM prices keep climbing

Micron Technology expects the memory shortage to worsen next year despite record profitability. The company's operating margin has already reached 81%, but customer demand remains extremely strong, and buyers are willing to pay nearly any price for memory.

A Micron representative said at the KeyBanc Technology Leadership Forum that customers cite the lack of DRAM as the main bottleneck for expanding AI infrastructure. Shortages of land, power resources, or accelerator chips have a much smaller impact on data center construction. The company currently can satisfy no more than half of the demand in the server memory market.

Micron has signed 16 strategic supply agreements, most of which run through 2030. These contracts guarantee a certain volume of memory chips and cap prices at levels seen in the second quarter of this year. Even if a customer does not need the agreed quantity, it must still pay the full amount. Future deals will be based on current market prices, which continue to rise.

TrendForce forecasts that contract prices for server DRAM will increase by 13–18% sequentially in the current quarter. Micron, meanwhile, says it plans to slow the pace of price increases for its products in the near term, although that contradicts expectations of a tighter supply situation in 2027.

The company is also leveraging geopolitical factors, emphasizing that it is the only one mass-producing memory chips in the United States. Samsung's operations in the region are focused on contract manufacturing of logic components, while SK hynix's Indiana plant will handle memory packaging rather than earlier production stages. Micron believes it is justified in charging a premium for products fully manufactured in the US.