AI-Driven Cars Will Demand Massive Memory Capacity, Micron CEO Predicts

As the automotive industry races toward higher levels of autonomy, the demand for high-capacity, high-speed memory is poised for significant growth. Micron Technology CEO Sanjay Mehrotra recently stated that vehicles with Level 4 (L4) autonomy will eventually require more than 300GB of RAM Tom’s Hardware.

Micron’s Q2 2026 Earnings and Growth

Micron reported $23.86 billion in revenue for its second quarter of fiscal year 2026, a substantial 200% increase from the $8.03 billion reported in the same quarter of the previous year Tom’s Hardware. This growth is largely attributed to the strong demand for High Bandwidth Memory (HBM) chips from AI hyperscalers, coupled with supply constraints and the company’s operational efficiency.

Expanding Manufacturing Capacity

To meet the growing demand, Micron is expanding its manufacturing footprint with planned fabrication plants (fabs) in Japan, Singapore, and a “megafab” in New York Tom’s Hardware. These facilities are expected to reach online between 2028, and 2029. Micron anticipates a 20% increase in output in 2026 Tom’s Hardware.

The Rise of L4 Autonomy and Memory Requirements

Vehicles are categorized into six levels of autonomy, ranging from L0 (no automation) to L5 (full automation). L4 autonomy allows vehicles to operate without human intervention in most tasks, though drivers retain the option to take control. The implementation of L4 autonomy, powered by AI platforms like Nvidia’s Drive Hyperion, will significantly increase the need for high-speed memory Tom’s Hardware. Nvidia is collaborating with automakers like BYD, Geely, Isuzu, and Nissan to adopt its autonomous vehicle platform.

Current vs. Future Memory Needs

Even as most modern vehicles currently require at least 16GB of memory, the transition to L4 autonomy will necessitate a substantial increase. This mirrors a recent trend observed in the high-end Mac market, where demand for systems with up to 512GB of Unified Memory has surged due to interest in running AI applications like OpenClaw Tom’s Hardware. Apple even temporarily removed the 512GB Mac Studio from its online store due to high demand.

Market Dynamics and Potential Challenges

Although the demand for automotive memory is expected to increase, several factors could influence the timeline. The high cost of vehicles with L4 autonomy and the evolving regulatory landscape may slow adoption. However, if and when these vehicles become more prevalent, memory chip manufacturers will need sufficient capacity to meet the increased demand and avoid potential shortages.

Micron’s Margin Performance

Micron has seen its margins for conventional DRAM, including DDR5, exceed those of High Bandwidth Memory (HBM) The Elec. This is due to long-term contracts and tight supply conditions. While both HBM and DRAM are currently profitable, general-purpose DRAM margins have surpassed those of HBM. Micron is strategically managing its product mix to align with the sustained growth in AI demand The Elec.

Micron CEO Sanjay Mehrotra noted during the company’s fiscal second-quarter earnings call that non-HBM margins are currently higher than HBM margins The Elec. HBM pricing is often set in advance through strategic customer agreements, limiting immediate capture of price increases beyond contracted supply volumes.