Ford has entered into a long-term Strategic Customer Agreement with chipmaker Micron, becoming the second major US carmaker after General Motors to secure such an arrangement with the company.
The agreement is intended to reinforce supplies of memory and storage components for Ford’s next generation of vehicles.
Micron said it is raising production of key automotive memory products, alongside capacity expansions aimed at supporting lengthy product lifecycles and maintaining supply for important manufacturing programmes.
According to the company, these investments form part of a wider plan to expand supply in step with growing global demand for memory and storage products, while also supporting the automotive sector and US infrastructure.
Ford Motor Company president and CEO Jim Farley said: “Producing the high-volume vehicles of the future in the US will require a resilient supply chain. We applaud Micron’s commitment to manufacturing in America, expanding its domestic production and investing in a skilled workforce.”
Micron has said that the deal is backed by its ongoing investment to expand and localise supply for automotive customers, including advanced DRAM manufacturing in Manassas, Virginia.
The company said its $2bn upgrade of the Manassas fabrication plant, where production started earlier this year, is designed to support extended product cycles, improve supply visibility and help maintain continuity of products used across the automotive industry.
Micron Technology chairman, president and CEO Sanjay Mehrotra added: “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.
“Through supply assurance, deep technology collaboration, and continued investment in manufacturing capacity, we are helping enable consistent, long-term support for Ford’s next-generation vehicle production as demand for advanced memory continues to grow.”
Micron’s agreement with GM also goes further than existing supply arrangements, with the two companies continuing to work together on memory and storage technologies for future vehicle programmes.
