Micron locks in historically high memory prices for five years
He explained that Micron has signed 16 SCAs, most of them covering 2026 to 2030, and that they involve a commitment to buy a certain quantity of product and pay for it in a pricing band that has a floor and a ceiling price. The floor price covers the historically high gross margins mentioned above, and the ceiling price means those who commit to an SCA are insulated if memory prices go even higher.The CEO said 16 customers have signed SCAs and then explained why it’s worth locking into the deals even though they bake in such high margins. REG AD googletag.cmd.push(function() { googletag.display('labrador/thereg/article/desktop/b'); }); “Our customers are recognizing that supply shortages in memory and storage will take considerable time to improve,” he said.
- ▪He explained that Micron has signed 16 SCAs, most of them covering 2026 to 2030, and that they involve a commitment to buy a certain quantity of product and pay for it in a pricing band that has a floor and a ceiling price.
- ▪The floor price covers the historically high gross margins mentioned above, and the ceiling price means those who commit to an SCA are insulated if memory prices go even higher.The CEO said 16 customers have signed SCAs and then explained w
- ▪REG AD googletag.cmd.push(function() { googletag.display('labrador/thereg/article/desktop/b'); }); “Our customers are recognizing that supply shortages in memory and storage will take considerable time to improve,” he said.
Opening excerpt (first ~120 words) tap to expand
(function() { let windowUrl = window.location.href; windowUrl = windowUrl.substring(windowUrl.indexOf('?') + 1); let messageElement = document.querySelector('.shareableMessage'); if (windowUrl && windowUrl.includes('code') && windowUrl.includes('expires')) { messageElement.style.display = 'block'; } })(); systems Micron locks in historically high memory prices for five years Big buyers agree to deals that will deliver historically enormous margins and profits Simon Sharwood Simon Sharwood APAC Editor Published thu 25 Jun 2026 // 03:07 UTC Memory-maker Micron has found a way to keep prices for its products sky-high for another five years, by signing 16 “strategic customer agreements” (SCAs) that include a floor price the company says comes with “a very robust gross margin for Micron, well…
Excerpt limited to ~120 words for fair-use compliance. The full article is at theregister.
Discussion
0 commentsMore from theregister
