Micron Technology Inc. (NASDAQ:MU) said Wednesday that customers are committing billions of dollars years in advance to secure future memory supply amid a prolonged shortage driven by artificial intelligence demand.
Customers Lock In Future Supply
Speaking on the company’s third-quarter earnings call, CEO Sanjay Mehrotra said Micron has signed 16 strategic customer agreements across its data center, consumer and automotive businesses, adding that “the memory industry has been structurally transformed by the proliferation of AI.”
The agreements include about $22 billion in customer commitments, including roughly $18 billion in cash deposits, under contracts spanning up to five years that currently cover about 20% of Micron’s DRAM volume and one-third of its NAND volume, which is expected to eventually account for half or more of its revenue.
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