Micron Locks In $100 Billion Minimum Revenue as 16 Memory Deals Floor Next Downcycle
Updated
Updated · Trefis · Aug 31
Micron Locks In $100 Billion Minimum Revenue as 16 Memory Deals Floor Next Downcycle
3 articles · Updated · Trefis · Aug 31
Summary
$100 billion in minimum revenue is secured under 16 take-or-pay agreements covering Micron's DRAM and NAND supply, with 14 contracts running roughly through the end of 2030.
Those deals were signed during the shortage to protect the next downturn: customers must pay for committed volumes, and Micron says the floor prices still imply gross margins above any prior cycle's peak quarterly level.
$22 billion of customer deposits and related commitments back the agreements, while coverage so far spans about 20% of DRAM volume, one-third of NAND volume and roughly 25% of revenue.
Micron expects planned agreements to lift covered revenue to half or more of the company total, though some large contracts cap pricing on existing products at calendar Q2 2026 market levels, limiting upside in another price spike.
The contracts arrive after a sharp profitability rebound, with operating margin improving from -14.1% three years ago to 65.7% over the last 12 months.