Micron Technology completed 16 strategic customer agreements (SCAs) with data center, auto, and consumer clients, locking in 20% of DRAM and one-third of NAND shipments under 3–5 year contracts at pricing below previous cycle peaks.

Micron Technology has completed 16 Strategic Customer Cooperation Agreements (SCAs), spanning data centers, consumer electronics, and automotive markets, according to a research report from China Gold International Securities. Automotive customers have signed three-year agreements, while other customers have committed to five-year terms.

These 16 SCAs now represent 20 percent of Micron's DRAM shipments and one-third of its NAND shipments. Even at the lower end of the negotiated price range within these agreements, Micron can achieve profitability levels exceeding those at the peak of previous cycles.

The report expects DRAM and NAND supply to remain constrained through 2027. China Gold International Securities believes the storage industry will face sustained supply tightness, positioning Micron to maintain elevated profit margins. By locking in long-term supply agreements, Micron is expected to dampen cyclical fluctuations in product pricing and earnings volatility, reducing the company's exposure to typical industry cycles.