Micron inks $100B memory supply agreements; CEO: no line of sight to end of RAM crisis

Micron announced that it signed 16 strategic customer agreements (SCAs), 14 of which are worth around $100 billion in cumulative minimum revenue, and expects to receive cash deposits and other commitments worth $22 billion over the remaining agreement terms. The contracts are signed with a five-year term (except automotive LTAs with three-year terms), running from calendar 2026 through 2030, and represent roughly 20% of Micron's DRAM volume and 33% of the company's NAND volume through 2030.

Micron claims it signed agreements with four 'very large customers' and three 'medium-sized customers,' marking a significant shift in its model—historically the company only locked in LTAs with select major players like Apple and NVIDIA. Sanjay Mehrotra, CEO of Micron, stated: 'Even as we expect industry supply to improve gradually in 2028, we currently do not have line of sight as to when memory supply will be able to catch up with increasing demand.'

For architects, this signals sustained supply pressure and rising memory costs through 2027–2028. The $22 billion in deposits represent customer conviction that supply will remain scarce, and the long-term lock-in prevents downward pricing pressure even as utilization fluctuates, anchoring infrastructure costs.