this post was submitted on 25 Jun 2026
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386
Micron locks in historically high memory prices for five years (www.theregister.com)
submitted 19 hours ago by ryper@lemmy.ca to c/technology@lemmy.world
85 comments fedilink hide all child comments
 

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.

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[–] ThatGuyNamedZeus@feddit.org 6 points 18 hours ago (2 children)

is there any good reason to charge more? I remember a long time ago, the people who run youtube had to have new technology invented to be able to store the videos on there.

is anything like that happening with ram chips?

[–] bluGill@fedia.io 1 points 5 hours ago

There are only a small number of RAM chips that are not already bought. If you make computers and want at one of those chips you can get priority if you sign a 5 year contract. They are betting that the supply/demand problems ease and so the price they can get will go down in a year - but you are locked into the high price for 4 more years. If prices go up even more you get a great deal, if prices go down you lose - make your bets, but remember this bet also comes with supply today and so you may not have a choice.

[–] cyberpunk007@lemmy.ca 3 points 11 hours ago

Simple supply and demand problem