Micron warns high-bandwidth memory shortages will persist beyond 2027 as it scales capital spending for AI demand.

Micron CEO Sanjay Mehrotra provided an alarming outlook on the high bandwidth memory (HBM) supply crunch during the company's post-earnings conference call, projecting the shortage will extend beyond 2027.

Mehrotra emphasized that the semiconductor industry is confronting a severe supply-demand imbalance, with demand for HBM vastly outpacing manufacturing capacity. Given the time required to advance packaging and manufacturing processes, the supply crunch will persist for years, he warned. The executive stressed the long-term structural importance of the issue as the AI wave accelerates across the global chip industry.

"AI has become one of the most significant growth drivers for memory technology in decades, and we are still in the very early stages of this expansion," Mehrotra stated during the call.

Micron's outlook signals continued constraints on HBM availability despite the company's capital expenditure plans aimed at scaling production to meet AI-driven demand.