Micron warns HBM supply will tighten in 2027-2028 as it expands capacity

Micron used its latest quarterly earnings report to state for the first time that HBM capacity supply in 2027 and 2028 will be tighter than in 2026, while expanding HBM output across four manufacturing sites in Taiwan: Taoyuan, Taichung, Tongluo and Tainan. Revenue and profit for the quarter both beat market expectations, but according to the report, the more notable takeaway was management's view on longer-term supply and demand: extending the tight-supply judgment explicitly to 2027 and 2028 was the biggest new piece of information from the earnings disclosure. The report framed that statement as an upgrade of HBM supply constraints from a short-term story to a medium-term structural view.

Citing a 2 October report by Taiwan's DigiTimes, the account says Tung Hui-lu, Micron's vice president of Asian DRAM front-end manufacturing and chairman of Micron Taiwan, confirmed that AI is driving strong memory demand and that the company is pushing ahead with expansion at all four sites. Analysis cited in the report suggests that even with the whole industry adding capacity, HBM's strong pricing cycle could last longer than previously expected, extending the period in which memory makers' earnings are supported — and implying that downstream AI chip makers will still face a tight bargaining environment in 2027 and 2028. As of this report, the matter rests at the disclosure of that statement and the expansion plan, with no further capacity figures or timelines provided.