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Micron, GM Sign Semiconductor Supply Agreement for Vehicles

The pact covers low-power DRAM, NOR flash and UFS NAND as automakers seek more reliable access to chips after years of shortages.

  • On Wednesday, Micron Technology and General Motors signed a long-term supply agreement for memory and storage chips used in vehicle production, securing access to LPDRAM, NOR flash memory, and UFS NAND for software-defined vehicles.
  • Automakers are seeking long-term semiconductor access following years of supply disruptions, particularly as DRAM prices have surged about 70 per cent since December due to surging AI-powered data center demand.
  • Supporting the partnership, Micron is modernizing its Manassas, Virginia facility with a $2 billion investment, with the deal representing one of 16 strategic customer agreements designed to align long-term demand with manufacturing capacity.
  • Mary Barra, Chair and CEO of General Motors, said "Delivering next-generation vehicles at scale requires a resilient and closely aligned supply chain," emphasizing deeper integration of AI and advanced driver assistance capabilities.
  • Beyond current supplies, Micron and GM will jointly develop next-generation memory technologies as vehicles become increasingly dependent on AI and advanced driver assistance systems, leveraging expanded United States manufacturing.
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ReutersReuters
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Reuters broke the news in New York, United States on Wednesday, July 1, 2026.
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