Micron Technology announced on Thursday that it has signed long-term cooperation agreements with several automotive supply chain companies, including chip design company Qualcomm and audio product manufacturer Harman, to ensure the supply of storage and memory components needed to support the operation of AI-powered vehicles.
Tech free press noted that these agreements were signed as the entire semiconductor industry was accelerating capacity expansion to meet the growing demand for memory chips driven by the rapid popularization of artificial intelligence technology.
Currently, memory chips are widely used in data centers, consumer electronics, and the automotive industry, and support many AI functions in smart cars, such as advanced driver assistance systems (ADAS), digital cockpits, and intelligent in-vehicle computing platforms.
Micron is currently the only company in the United States that produces high-bandwidth memory (HBM) chips, which are primarily used in Nvidia’s AI processors. With the explosive growth in demand for AI computing, Micron, along with competitors SK Hynix and Samsung Electronics, has benefited from the surge in market demand and has been able to sell related products at higher prices.
Micron’s new partnerships also include automotive parts suppliers Visteon, JOYNEXT, DENSO, Astemo, and Hyundai Mobis. These agreements aim to provide a more stable chip supply and pricing environment, helping automakers better plan production and prepare for investments in next-generation advanced automotive platforms.
Qualcomm President and CEO Cristiano Amon stated, “As cars become increasingly software-defined, automakers need platforms that can integrate high-performance computing, connectivity, memory, and storage technologies.”
Micron CEO Sanjay Mehrotra stated in June that the company had signed 16 strategic customer agreements. He anticipates that in addition to growth driven by data centers, artificial intelligence capabilities in smartphones, high-end PCs, automotive applications, and robotics will continue to fuel business growth.