Micron Technology and Ford Motor on Monday signed a long-term agreement to secure the supply for memory and storage platforms used in the automaker's next-generation vehicle production.

This comes days after Micron's similar agreement ‌with General ⁠Motors, ⁠as part of the chipmaker's ongoing investments to expand manufacturing in the United States for automotive customers, including its expansion of advanced DRAM production in Virginia.

DRAM, or dynamic random-access memory, is a critical ​component for servers that power ⁠cloud computing, ‌databases and AI workloads.

DRAM prices have risen about 70% since December, ⁠according to a S&P Global Mobility report, amid high demand for memory chips owing to surging investments towards AI-powered data centers.

Memory chips have also become a crucial part of vehicle production with advanced driver aid systems and power-hungry infotainment systems, adding ‌automakers to the competition for tightening supply for these chips.

"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," ​said Sanjay Mehrotra, CEO of Micron Technology.

Micron's supply agreements with Ford and GM are among the 16 outlined by the chipmaker during its third quarter.