Micron Technology (MU) Wolfe Research Auto, Auto Tech and Semiconductor Conference 2026 summary

Market environment and demand trends

• Demand for memory and storage is outpacing supply, driven by AI advancements and larger, more complex models requiring higher performance memory and storage across data centers and edge devices.

• Supply-demand tightness is expected to persist beyond 2026, with major hyperscalers increasing CapEx to nearly $800 billion for 2026, up from under $200 billion a few years ago.

• Memory content is increasing in servers, smartphones, and PCs, with AI workloads driving higher performance requirements and re-architecting memory systems.

• Customers are only able to meet 50% to two-thirds of their demand due to supply constraints, affecting both large and small customers across markets.

• The favorable price environment is strengthening financial outlooks, primarily driven by price increases.

Supply strategy and capacity expansion

• Clean room space is being prepared to align bit supply with market demand, with new DRAM and NAND fabs announced in New York and Singapore, respectively.

• The Singapore NAND fab is expected to have its first wafer out in the second half of 2028, while the Tongluo site in Taiwan will support DRAM production after closing in Q2.

• Incremental supply will come from the 1-gamma node ramp in 2026, Idaho One greenfield capacity in mid-2027, and Tongluo acquisition capacity by late 2027.

• Node transitions are less efficient than before, and high-bandwidth memory (HBM) is more silicon-intensive, further pressuring supply.

• CapEx guidance for fiscal 2026 is $20 billion, with the Tongluo investment adding to that figure.

Customer agreements and technology leadership

• Multi-year supply agreements with specific commitments are being negotiated, reflecting the growing importance of memory and storage in AI and broader devices.

• Customers seek supply assurance over 3-5 years or longer, with extended time horizons for both product roadmaps and capital investments.

• Technology leadership is demonstrated by HBM3E products offering 30% lower power than competitors and LPDRAM providing 60% lower power than DDR.

• U.S. supply coming online is of increasing interest to customers.

• Agreements provide both customers and the company with greater visibility and investment clarity.