Micron Technology NASDAQ:MU rose about 4% in premarket trading Monday after announcing a long-term memory and storage supply deal with Ford NYSE:F, deepening its push into the automotive market as vehicles become more data-heavy.
The agreement gives Ford a more reliable supply of Micron memory and storage products for next-generation vehicles. Micron said the deal is supported by its expanded advanced DRAM production at its Manassas, Virginia fab, part of a broader capacity buildout aimed at customers with long product lifecycles.
CEO Sanjay Mehrotra said the shift toward more intelligent, connected vehicles is making advanced memory more critical. He said the Ford deal combines supply assurance, deeper technology collaboration, and continued manufacturing investment as demand for memory keeps growing.
The deal also follows a similar long-term agreement Micron recently signed with General Motors NYSE:GM. Both were part of 16 Strategic Customer Agreements Micron highlighted on its latest earnings call.
Micron said these agreements now represent about 40% of its business, with a goal of eventually moving roughly half of revenue into longer-term customer arrangements.