Micron’s CEO, Sanjay Mehrotra, has warned that the current DRAM supply crisis is far from over. In the company’s recent Q3 earnings call, he told investors that customers are now realizing shortages in memory and storage “will take considerable time to improve.”
He added:
“Even as we expect industry supply to improve gradually in 2028, we currently do not have a line of sight as to when memory supply will be able to catch up with increasing demand.”
What Micron Is Doing
To address the shortage, Micron is making big moves:
- Building a new megafab in New York, expected to be completed by early 2029.
- Acquiring a fab from PSMC in a $1.8 billion deal, which should start producing meaningful DRAM output by late 2027.
While these expansions should help ease pressure over time, analysts expect memory prices to remain elevated for the foreseeable future.
Impact on Gaming Hardware
The ongoing shortage is likely to keep prices high for upcoming consoles and devices, including:
- The upcoming Xbox Helix
- PlayStation 6 and PS6 Portable
- Valve’s Steam Machine
This situation continues to affect PC builders, laptop makers, and gamers looking for affordable upgrades.
Summary Chart
| Aspect | Details |
|---|---|
| Current Situation | Severe DRAM shortage driven by AI data center demand |
| CEO Outlook | Supply will improve gradually in 2028, but full balance with demand is still unclear |
| Micron’s Actions | New York megafab (2029) + $1.8B PSMC fab acquisition (late 2027 output) |
| Price Impact | Elevated memory prices expected to continue for the next 2+ years |
| Affected Products | Xbox Helix, PS6 series, Steam Machine, PC components |
Sources: Micron Q3 2025 Earnings Call (Sanjay Mehrotra), The Elec, and recent industry supply chain reports.
What do you think about these prolonged memory shortages? I’d love to hear your thoughts!
Great content! Keep up the good work!