Memory-maker Micron has found a way to keep prices for its products sky-high for another five years, by signing 16 “strategic customer agreements” (SCAs) that include a floor price the company says comes with “a very robust gross margin for Micron, well above our peak quarterly margins in any past cycle.”
Micron CEO, president and chairman Sanjay Mehrotra explained the SCAs in prepared remarks delivered during the company’s Q3 earnings call. He explained that Micron has signed 16 SCAs, most of them covering 2026 to 2030, and that they involve a commitment to buy a certain quantity of product and pay for it in a pricing band that has a floor and a ceiling price. The floor price covers the historically high gross margins mentioned above, and the ceiling price means those who commit to an SCA are insulated if memory prices go even higher.
That doesn’t have anything to do with anything anyone was talking about, except that .ml accounts reflexively defend China…
And no one ever needs more of those examples.
My intent was to provide an explanation for why someone might consider your reply about Chinese manufactured ram being a supply chain risk to be inaccurate.
To be 100% clear as a bell: ram is not a supply chain vector people need to be worried about.