Micron Executive Warns: Storage is the AI Performance Bottleneck, Substantial New Capacity Not Expected Until After 2028
Sumit Sadana, Senior Advisor to the CEO of Micron Technology, stated at the Six Five Summit 2026 that memory has become the most critical bottleneck determining AI system performance. He revealed that Micron is embarking on an unprecedented capital expenditure plan, with CapEx expected to be slightly over $13 billion in fiscal year 2025, doubling in fiscal year 2026, and exceeding $45 billion in fiscal year 2027. The company has also increased its US investment to $250 billion. However, due to the lengthy construction cycles and complex processes of new factories, a substantial release of new capacity to address the industry's supply-demand imbalance is not expected until after 2028. Sadana also predicted that humanoid robots will become the largest incremental market for edge AI memory demand, following data centers.
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