Micron inks long-term supply agreements worth $100 billion — says it has no idea when RAM crisis will end
Micron has signed 16 LTAs with various customers to supply DRAM and NAND worth $100 billion.
The persistent global RAM supply crisis is forcing major players like Micron to secure long-term agreements, highlighting ongoing instability in critical compute component markets.
These agreements guarantee supply for some customers but also indicate that the RAM crisis, a key component of the compute supply chain, is far from over with significant implications for pricing and availability, impacting technology sectors broadly.
Key players are locking in supply and prices for DRAM and NAND over extended periods, reflecting a shift towards more stable, albeit potentially higher-cost, procurement strategies amidst continued supply uncertainty.
- · Micron
- · Large enterprise customers with LTAs
- · Cloud service providers
- · Smaller PC manufacturers
- · Spot market purchasers
- · Consumers (due to potential higher prices)
Micron secures substantial revenue and market share stability over the next few years.
Long-term supply agreements could exacerbate component shortages for companies not able to secure similar deals, driving up prices and potentially stifling innovation for smaller players.
The prolonged nature of the 'RAM crisis' indicates deeper structural issues within the semiconductor supply chain, potentially leading to increased government intervention or further regionalization efforts in manufacturing.
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Read at Tom's Hardware