Micron CEO: Customer Price Pressure Contributed to Memory Shortage, Plans $200B Investment

According to Micron CEO Sanjay Mehrotra on CNBC's Mad Money Tuesday, customer price pressure in recent years contributed significantly to the current memory chip shortage. Mehrotra noted that prices collapsed to one-third of prior levels in 2023, pushing Micron and other chipmakers into negative gross margins—Micron's fell to -7.3% in fiscal 2023—leaving the industry financially unable to invest in capacity as AI-driven demand accelerated. To address the supply crunch, Micron is investing roughly $200 billion in manufacturing and R&D, with new fabrication plants in Boise and Syracuse expected to begin production in mid-2027.
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