On the Dash:
- Ford signs long-term Strategic Customer Agreement with Micron to secure next-gen vehicle chip supply.
- Micron will expand automotive memory output, backed by its Manassas, Virginia DRAM production.
- Deal follows Micron’s similar agreement with General Motors; DRAM prices up 70% since December.
Ford Motor Company has signed a long-term Strategic Customer Agreement with Micron Technology to secure memory and storage chip supply for its next-generation vehicles.
The two companies announced the deal July 6. Under the agreement, Micron will expand output of automotive memory solutions, with capacity increases designed to support long product lifecycles and sustained supply for Ford’s critical production programs.
The agreement is backed by Micron’s ongoing expansion of advanced DRAM production at its fabrication plant in Manassas, Virginia. Micron said the investment is part of a broader effort to scale supply responsibly as global demand for memory and storage accelerates.
“Producing the high-volume vehicles of the future in the U.S. will require a resilient supply chain,” said Jim Farley, President and CEO of Ford Motor Company, in a release from Micron. “We applaud Micron’s commitment to manufacturing in America, expanding its domestic production and investing in a skilled workforce.”
The Ford agreement follows a similar Strategic Customer Agreement Micron signed with General Motors on July 1. Both deals are among 16 such agreements Micron discussed on its fiscal third-quarter 2026 earnings call, according to Reuters.
Memory chips have taken on a larger role in vehicle production as automakers add advanced driver assistance systems and power-hungry infotainment platforms. That has pushed automakers into more direct competition with data center operators for a tightening chip supply, Reuters reported.
DRAM prices have risen roughly 70% since December, according to a report from S&P Global Mobility, driven largely by surging investment in AI data centers.
