Jul. 2 at 3:30 PM
$MU anounces SCA w/
$GM
Micron’s SCAs include binding volume commitments, take-or-pay provisions, cash deposits while also setting an upper price cap tied to prevailing market levels from April to June (2H26), alongside a contractual price floor applied over the full term of the agreements. However, next-gen products such as high-bandwidth memory (HBM), DDR6, & LPDDR6 are said to be priced separately through negotiated terms.
The 16 SCAs lock up ~20% of DRAM output & 33% of NAND output, with a goal for >50% of total Revs under SCAs
Note: Only GM is publicly named; likely Anthropic,
$NVDA , &
$AMZN are amounf the other SCAs
14 of the 16 Micron's SCAs clients that have signed have a cumulative rev at minimum price per contracts of ~
$100B over the remaining agreement term w/ cumulative cash deposits & related financial commitments of
$22B
Micron RPO:
$100B+
SK hynix is now adopting contracts that eliminate the industry-standard price cap - unlike traditional memory contracts, where price ceilings are used to limit volatility, SK hynix’s new structure allows spot market price increases to be fully reflected in contract pricing when supply shortages push market prices higher. The shift, effectively reworks its long-term contract framework to better capture profitability during upcycle conditions. SK hynix may now be the only major memory supplier not applying a price cap in its long-term agreements
Long-term contract durations are also lengthening - SK hynix & Samsung are extending their long-term supply agreements from the traditional 1-year term to 3 to 5 years
Micron has already been employing long-term contracts in their SCAs
$DRAM
