Micron Accelerates 1-Gamma DRAM Ramp and HBM4 Shipments, Acquires $1.8B Tongluo Site
Micron reports AI-driven DRAM and HBM demand far exceeds supply, with customers fulfilling only 50%-67% of orders and hyperscaler capex approaching $800 billion in 2026. Adding capacity, ramping 1-gamma DRAM, shipping HBM4 early in Q1, acquiring a $1.8 billion Tongluo site in Q2 and planning a Singapore NAND fab for H2 2028.
1. Demand Outpaces Inventory
Company executives highlight that DRAM and HBM inventories remain lean, leaving customers able to satisfy only half to two-thirds of their orders. Hyperscaler capital spending is expected to near $800 billion in 2026, underscoring sustained high demand for AI memory.
2. AI-Memory Capacity Strategies
To narrow the supply gap, Micron is accelerating its 1-gamma DRAM node ramp while commencing HBM4 production and customer shipments one quarter ahead of schedule. Management reports that HBM4 yields are on track, delivering speeds over 11 Gbps and filling 2026 supply commitments.
3. Investment and Expansion Timeline
Greenfield expansions include the mid-2027 Idaho One DRAM fab, acquisition of a $1.8 billion Tongluo site closing in Q2, and a new Singapore NAND facility slated for first wafers in the second half of 2028. These initiatives, alongside node transitions, aim to bolster capacity through 2028.