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Micron locks in historically high memory prices for five years
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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 above our peak quarterly margins in any past cycle.” Micron CEO, president and chairman Sanjay Mehrotra explained the SCAs in prepared remarks delivered during the company’s Q3 earnings call. 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 “Our customers are recognizing that supply shortages in memory and storage will take considerable time to improve,” he said. “Even as we expect industry supply to improve gradually in 2028, we currently do not have line of sight as to when memory supply will be able to catch up with increasing demand.” REG AD MORE CONTEXT The memory crisis is getting so bad that even retro RAM prices are going to the Moon Smartphone market to shrink 15 percent this year due to memory crisis SK Hynix to boost memory production 3x ... you can wait another 8 years, right? Expect more of those DRAM price hikes as memory shortage continues to bite Even massive efforts to build new chip fabs aren’t much help, he said, because the increasing complexity of new memory types mean