By Adriano Marchese
Micron Technology has agreed to increase its output of key automotive memory chips to supply Ford Motor's next generation of vehicles.
The two companies on Monday said that the long-term strategic customer agreement is meant to strengthen the supply of memory and storage solutions supporting Ford's vehicle production.
As part of the agreement, Micron will increase production memory chips destined to be used in of Ford's latest vehicles. The capacity expansion is designed to support long product lifecycles and ensure sustained supply for critical production programs.
The deal comes as global demand for physical memory and storage components is accelerating at a fast clip, tightening access to needed components by automakers trying to secure their supply.
Micron said the move will be backed continued investments to expand and localize manufacturing for automotive customers, including its expansion of advanced DRAM production at its Manassas, Virginia plant.
Write to Adriano Marchese at adriano.marchese@wsj.com