Micron can now satisfy only about two‑thirds of the required memory volume for the market.

Micron Technology: What Executives Are Saying About Capital Expenditure Growth and Memory Shortages

Stock Decline
After announcing planned increases in capital expenditures, the company lost some market value.

Current Throughput
CEO Sanjay Mehrotra noted that Micron currently covers only 50–67% of memory demand.

Required Investment
To meet growing demand, the company must invest heavily in expanding production. In a CNBC interview he emphasized: “We can serve key customers from only half to two‑thirds of their needs.”

Shortage Forecast
Management predicts that by the end of this year there will still be shortages of both DRAM and NAND, and the situation will persist next year. Mehrotra called the gap “unprecedented”.

Why is a memory shortage emerging now?
1. DRAM Priority

- DRAM production is more profitable, so resources (raw materials, equipment) are redirected to this segment.

- This leads to a shortage of NAND memory and rising prices.

2. Market Shift

- Most DRAM now goes to the server market.

- As a result, sales volumes for PCs and smartphones—which typically use this memory—fall.

3. Accelerated SSD Wear

- With a DRAM shortage, SSDs are more often used as swap space, accelerating their wear.

- Rising NAND prices also increase the cost of solid‑state drives.

What This Means for Chinese Manufacturers
- Opportunity to enter the international market – new conditions create a chance for companies like YMTC and CXMT to go beyond China.

- US Restrictions – their exports remain limited by sanctions.

- Recently, YMTC and CXMT were removed from the Pentagon list but could be added again if relevant documents change.

- Unpredictability for American OEMs – uncertainty around memory availability complicates production planning.

In Short
Micron acknowledges that current output volumes cover only part of demand and serious investment in expansion will be necessary. DRAM and NAND shortages are expected through the end of the year and beyond, with the market experiencing an “unprecedented” gap between supply and demand. This drives SSD prices up and reduces memory availability for PCs and smartphones, creating both risks and opportunities for Chinese manufacturers amid US sanctions.