The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move deepening the link between semiconductors and automotive, Micron Technology (MU) and General Motors (GM) have signed a Strategic Customer Agreement to secure long-term supply of memory and storage platforms for GM's vehicle production. The agreement, announced by Micron in a press release, covers next-generation chips powering infotainment, autonomous driving, and safety systems. Financial terms were not disclosed, but the deal underscores automakers' growing push to lock in chip supply directly with manufacturers.
The agreement comes as the auto industry continues to recover from the global chip shortage that lasted for years, according to industry reports. GM and other automakers are diversifying supply sources to secure critical components amid rising demand for electric and connected vehicles. Micron, for its part, has been expanding its automotive-grade product lineup, including DRAM and NAND modules designed for harsh environments. Market data show Micron closed at $1,154.29 on June 30, while GM closed at $77.08.
Sign in to access this content
Sign InLooking ahead, recent strong US economic data — GDP grew 2.1% QoQ — may support auto demand and, in turn, chip orders. However, traders are watching inflation, with the PCE price index rising 4.1% year-over-year. The focus will be on upcoming quarters to gauge the deal's contribution to Micron's revenue and GM's cost efficiency.