Micron Advances Long-Term Supply Deals Covering 20% of DRAM and One-Third of NAND Shipments

Micron Technology has signed 16 Strategic Customer Agreements (SCAs) with customers spanning the data center, consumer electronics, and automotive markets. The automotive customer agreements have a three-year term, while most of the others are for five years. Collectively, these agreements account for 20% of Micron’s DRAM shipments and one-third of its NAND shipments. The floor prices stipulated in these agreements remain above the profitability levels seen at previous cycle peaks. Micron expects the DRAM and NAND markets to remain supply-constrained through 2027. By securing these long-term agreements, the company aims to reduce the cyclicality of its product pricing and earnings volatility.