Micron has concluded 16 Strategic Customer Agreements (SCAs). Some of them already set the price range for memory until the end of 2030. Micron aims to maintain its profit margin; the chance of falling prices anytime soon is diminishing.
Micron is the world's third-largest memory manufacturer and, after Samsung and SK Hynix, the most important supplier of Random Access Memory (DRAM) such as DDR5, LPDDR5X, and High-Bandwidth Memory (HBM). Together, the three companies account for more than 90 percent of the DRAM market.
Micron announced the 16 SCAs upon releasing its latest financial results. Among the signatories are cloud hyperscalers and manufacturers of servers, consumer devices, and cars. As usual, the company does not name specific names. Other memory manufacturers are pursuing similar agreements, but Micron is now unusually open about the content.
High price level cemented
The largest agreements include price ranges for which customers will purchase DRAM and NAND flash for SSDs over the next five years. Prices are capped at the maximums that Micron has achieved until the end of May 2026. If the current ratio between supply and demand persists, the largest customers will therefore pay the same prices as recently. For Micron, this means an average gross margin of about 85 percent.
