Ford signs long-term chip supply agreement with Micron after GM

Micron announced that it is increasing production of key automotive memory products, with capacity expansions aimed at supporting long product lifecycles.

Ford has signed a long-term Strategic Customer Agreement with chipmaker Micron, becoming the second major US automaker after General Motors to secure such a deal with the company.

The agreement aims to strengthen the supply of memory and storage components for Ford’s next generation vehicles.

Micron said it is increasing production of key automotive memory products, with capacity expansions aimed at supporting long product lifecycles and maintaining supply for key production schedules.

According to the company, these investments are part of its plan to expand supply by adapting to global demand for memory and storage products, while also supporting the automotive sector and US infrastructure.

“Producing high-volume vehicles of the future in the U.S. will require a resilient supply chain,” said Jim Farley, president and CEO of Ford Motor Company. “We appreciate Micron’s commitment to manufacturing in America, expanding its domestic production, and investing in a skilled workforce.”

Micron stated that the deal is supported by its ongoing investments in expanding and localizing supply for automotive customers; these include advanced DRAM manufacturing in Manassas, Virginia.

The $2 billion upgrade of its Manassas manufacturing facility, where production began earlier this year, is designed to support long product cycles, increase supply visibility and maintain continuity of products used in the automotive industry, the company said.

Sanjay Mehrotra, chairman, president and CEO of Micron Technology, added: “As vehicles become more intelligent and data-intensive, the importance of advanced memory and storage continues to grow, making collaboration and long-term provisioning increasingly important.

“By supply assurance, deep technology collaboration and continued investment in manufacturing capacity, we are helping to provide consistent, long-term support for Ford’s next-generation vehicle production as demand for advanced memory continues to grow.”

Micron’s agreement with GM goes beyond existing supply arrangements; The two companies continue to work together on memory and storage technologies for future vehicle programs.