Micron signed 16 long-term supply agreements worth approximately $100 billion for DRAM and NAND supplies, with total aggregate contracted value of $1 trillion across agreement terms.

In a world where memory has shifted from commodity to strategically valuable asset, major customers are increasingly signing long-term supply agreements (LTAs) with suppliers to secure steady access to 3D NAND and DRAM. Micron announced this week that it has signed 16 strategic customer agreements (SCAs), with 14 carrying a cumulative minimum revenue guarantee of approximately $100 billion. The company also expects to receive cash deposits and other financial commitments worth $22 billion from these arrangements.

According to Micron's statement, "14 of the 16 SCAs that we have signed have a cumulative revenue at minimum price per our contracts of approximately $100 billion over the remaining agreement term. Under the SCAs we have signed so far, we project to receive cash deposits and related financial commitments of $22 billion."

The $100 billion figure represents a guaranteed baseline revenue assuming customers purchase minimum committed volumes at minimum contract prices. Actual revenue could exceed this if customers buy higher volumes or pay premium prices. The agreements span five-year terms through 2030, with the exception of automotive LTAs, which have three-year terms beginning in calendar 2026.

Micron reports signing agreements with four "very large customers" and three "medium-sized customers"—clients that had previously avoided long-term commitments. The timing reflects acute supply pressures: Micron projects that memory supply will remain insufficient throughout 2027, with only gradual improvement expected in 2028. "With respect to supply, our customers are recognizing that supply shortages in memory and storage will take considerable time to improve," said Sanjay Mehrotra, Micron's chief executive. "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."

The scale of these agreements marks a notable shift in Micron's business model. Historically, the company reserved LTAs for select premium clients like Apple and NVIDIA. Signing 16 such agreements represents roughly 20% of Micron's DRAM volume and 33% of its NAND volume through 2030, though the company may sign additional agreements with other customers.