Micron locks in five-year floor prices with major customers, guaranteeing historically high margins
By
Simon Sharwood
Summary
Micron has secured 16 "strategic customer agreements" (SCAs) with major buyers that lock in floor prices for memory products from 2026 to 2030. CEO Sanjay Mehrotra stated these deals guarantee "very robust" gross margins well above the company's peak quarterly margins from any past cycle. The agreements represent a structural shift in how memory pricing works, moving away from the historically volatile boom-and-bust cycles of the semiconductor industry.
Source
bskyMicron locks in five-year floor prices with major customers, guaranteeing historically high marginstheregister.comKey quotes
· 1 pulleda very robust gross margin for Micron, well above our peak quarterly margins in any past cycle
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