Micron Technology is done playing the memory market’s boom-and-bust game on a quarter-by-quarter basis. CEO Sanjay Mehrotra announced during the company’s fiscal Q2 2026 earnings call on March 18 that Micron has signed its first Strategic Customer Agreements, multi-year contracts that lock in specific volume and supply commitments with major customers.
The numbers are significant. These SCAs currently cover approximately 20% of Micron’s DRAM volume and roughly 33% of its NAND volume, with the company projecting that over 50% of total revenue will eventually flow through these agreements.
What these agreements actually mean
The first agreement signed is a five-year deal, which Mehrotra described as a robust multi-year pact with specific commitments. That’s an unusually long horizon for the memory industry, where pricing has historically swung wildly based on supply-demand dynamics that shift every few quarters.
For Micron, the benefit is straightforward: revenue visibility. Memory companies have traditionally been at the mercy of cyclical pricing, where a glut of supply can crater margins overnight. Locking in volume commitments gives the company a floor to plan around.
