Skip to navigationSkip to main contentSkip to right columnAnanya GairolaFri, June 26, 2026 at 11:46 AM GMT+2 6 min readBenzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.On Wednesday, Micron Technology Inc. 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 SupplySpeaking 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.Don't Miss:A single bad hire can set a startup back years. Here are the 5 hires founders most often misjudge — and whyStill Learning the Market? These 50 Must-Know Terms Can Help You Catch Up FastAccording 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."The pace is constrained by several factors," Mehrotra said, noting long construction timelines, labor shortages, regulatory hurdles and growing energy infrastructure requirements.HBM Growth Adds Pressure To Global Memory SupplyThe Micron chief executive also highlighted the increasing complexity of memory manufacturing, particularly as advanced technologies such as High Bandwidth Memory, or HBM, become critical components in AI systems.Mehrotra said every major AI computing platform — whether powered by GPUs, CPUs or custom AI accelerators — relies heavily on memory performance and capacity.Trending: Avoid the #1 Investing Mistake: How Your 'Safe' Holdings Could Be Costing You Big TimeAs a result, memory has evolved from a supporting component into what he described as a "strategic asset" within the AI ecosystem.He added that growing HBM adoption is putting additional pressure on the conventional memory supply because advanced memory products require more manufacturing resources and capacity.In NAND flash memory, Mehrotra said some suppliers are reallocating cleanroom space toward DRAM production, further constraining NAND supply growth.Micron Signs 16 Strategic Customer AgreementsAgainst that backdrop, Mehrotra said customers are increasingly seeking long-term supply assurances to support their future product road maps.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info