On Wednesday, Micron Technology Inc. (NASDAQ:MU) CEO Sanjay Mehrotra warned that the memory industry may struggle to keep pace with surging artificial intelligence demand for years, citing structural supply constraints that are limiting the sector’s ability to expand production.
AI-Driven Memory Demand Continues To Outpace Supply
Speaking during Micron’s fiscal third-quarter 2026 earnings call, Mehrotra said customers increasingly recognize that shortages in memory and storage products will take significant time to ease.
“Even as we expect industry supply to improve gradually in 2028, we currently do not have line of sight as to when memory supply will be able to catch up with increasing demand,” he said.
According to Mehrotra, the industry’s ability to add capacity depends on large-scale greenfield semiconductor fabs that are expensive, complex and time-consuming to build.
