Ford, GM secure long-term Micron memory deals as DRAM prices spike 70%; one of 16 SCAs

Micron signed long-term Strategic Customer Agreements (SCAs) with Ford and General Motors to lock in memory and storage supply for next-generation vehicles as DRAM prices have surged approximately 70% since December. These deals are two of 16 total SCAs Micron discussed in its fiscal Q3 2026 earnings call, now accounting for roughly 40% of Micron's total business footprint. The agreements provide fixed, multi-year volume commitments that shield automakers from spot-market price spikes while guaranteeing Micron factory utilization.

For Ford, the deal covers next-generation vehicle production including LPDRAM and advanced DRAM through Micron's Manassas, Virginia facility. For GM, the agreement covers LPDRAM, NOR, and UFS NAND. Both agreements are backed by Micron's ongoing $2 billion modernization of Manassas, which began production in early 2026, and are designed to support vehicles becoming increasingly intelligent and data-intensive.

The push for supply certainty is driven by competition between AI-focused data centers and automotive OEMs for the same DRAM capacity. AI infrastructure buildout has triggered a severe global semiconductor squeeze, forcing automotive buyers to lock in supply directly from foundries rather than relying on fragmented component brokers. Both Ford and GM emphasized that resilient, domestic supply chains are critical to U.S. vehicle manufacturing competitiveness.

For infrastructure and procurement teams, the signal is clear: OEM-direct supply agreements are now strategic necessities, not procurement optimizations. When DRAM prices spike 70% in six months, supply assurance becomes a cost control tool that can protect production margins. The concentration of Micron's revenue in these mega-deals (40% in SCAs) also signals the shift from transactional chip buying to partnership-locked capacity commitments.