Micron, Ford sign semiconductor supply agreement for vehicles

July 6 (Reuters) - Micron ‌Technology and ​Ford ​Motor on Monday signed a long-term agreement to secure the supply for memory ‌and storage platforms used in the automaker's next-generation ⁠vehicle production.

This comes days after Micron's similar agreement with ‌General Motors, as part ‌of the chipmaker's ongoing investments to expand manufacturing in the United States for automotive customers, including ​its expansion of advanced DRAM production in Virginia.

• DRAM, or dynamic random-access memory, is ⁠a critical component for servers that power cloud computing, databases and AI ​workloads.

• DRAM prices have risen about 70% since December, according to a S&P ​Global Mobility report, amid high ‌demand for memory chips owing to surging investments towards AI-powered data centers.

• Memory ⁠chips have also become a crucial part of vehicle production with advanced driver aid systems and power-hungry ⁠infotainment systems, adding automakers to the competition for tightening supply ​for these chips.

• "As vehicles become more intelligent and data-intensive, the importance of advanced memory and storage continues to grow, ‌making collaboration and long-term supply increasingly important," said Sanjay Mehrotra, CEO of Micron ‌Technology.

• Micron's supply agreements with Ford and GM ⁠are among the ‌16 outlined by ​the chipmaker during its third quarter.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Joyjeet ‌Das)

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