The US chipmaker locks in three- to five-year agreements to support the growing memory and storage demand for AI-driven vehicles
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2026-07-17 15:55:40
Automobiles
Micron Technology Inc., the world’s third-largest memory chipmaker, signed long-term deals with global auto parts manufacturers and platform providers, including Qualcomm Inc., Hyundai Mobis Co. and Samsung Electronics Co.’s Harman International Industries Inc., to supply automotive artificial intelligence (AI) memory chips.
Micron said on Thursday that it has completed strategic customer agreements (SCAs) with these partners and other parts suppliers, including Visteon Corp., Denso Corp., Joynext Technology Co. and Astemo Ltd., to provide essential memory and storage products for AI-enabled vehicle platforms.
The SCAs are designed to support the automotive industry’s long-term access to advanced memory and storage solutions, the US chipmaker said.
“As vehicles become increasingly intelligent, memory and storage are critical enablers of technology experiences that consumers demand,” Micron President and CEO Sanjay Mehrotra said in a statement.
“These SCAs with leading automotive technology partners will help ensure that advanced vehicle platforms have the memory and storage capabilities required to deliver richer, safer and more intelligent experiences.”
Under the agreements, Micron will supply products for AI-driven vehicle platforms, such as automotive infotainment, advanced driver assistance systems (ADAS) and digital cockpits, over a three- to five-year period, according to industry
The move underscores a growing trend of global tech giants scrambling to secure critical memory components amid a supply shortage fueled by the AI boom.
GROWING AI CHIP DEMAND IN AUTO INDUSTRY
The automotive industry’s demand for such parts is also growing as the sector shifts toward increasingly sophisticated AI-enabled vehicles.
“Automakers are accelerating the development of intelligent vehicle platforms that rely on advanced driver assistance capabilities to enhance safety and driver confidence,” said Lee Gyusuk, CEO of Hyundai Mobis, the world’s fourth-largest auto parts manufacturer.
“Supporting these platforms requires long-term technology planning and a resilient supply ecosystem.”
The inclusion of Harman, wholly owned by the global No. 1 memory chipmaker Samsung, has drawn industry attention.
Samsung has maintained Harman’s independent management structure since the South Korean tech giant acquired the automotive and audio electronics specialist in 2017.
“By working with key technology partners like Micron, we are helping strengthen the resilient memory and storage foundation needed to reliably deliver increasingly intelligent, software-defined vehicle platforms, said Christian Sobottka, CEO and president of Harman’s automotive division.
The SCAs come at a time when the rapid adoption of AI tools has driven up memory chip demand, forcing the industry into a race for capacity expansion.
Micron said the agreements would provide the company and its partners with greater visibility for optimized production planning and increased collaboration on future memory and storage requirements.
This increased visibility and strategic planning are critical for the automotive segment, balancing traditionally longer product lifecycles and rigorous qualification standards with the faster adoption of advanced technology
Global chipmakers, including Micron, are seeking to secure long-term supply deals to protect themselves from sudden demand collapses. In addition, such contracts allow chipmakers to maintain premium pricing locked in during times of global supply constraints.
Micron previously disclosed it had secured 16 SCAs during its fiscal third-quarter earnings call last month.
Jongwoo Cheon edited this article.
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