Micron Locks 20 Percent DRAM Volume in Five-Year Take-or-Pay Agreements Backed by U.S. Supply Plans

The quarter showed Cloud Memory revenue at $13.77 billion against a $10.69 billion estimate and gross margin expansion to 84.9 percent. Guidance for Q4 revenue of $49-51 billion implies sequential growth above 18 percent. These figures reflect binding purchase commitments rather than spot-market exposure.

The SCAs include price ceilings at current levels for major customers and floor prices across the term, converting roughly half of projected revenue into contracted streams by 2030. Four large and three medium customers anchor the agreements, with automotive pacts running three years. This structure reduces volume cyclicality while preserving upside if market prices exceed ceilings.

U.S. supply commitments cited in the agreements align with CHIPS Act incentives that prioritize domestic capacity. Customers explicitly valued these plans in negotiations. The shift mirrors earlier patterns in which export controls and subsidy programs redirected procurement toward U.S.-aligned production nodes.

Next earnings will test whether additional SCAs close the remaining gap to 50 percent contracted revenue and whether Q4 gross margin reaches the guided 86 percent. Any shortfall in customer pull from data-center builds would surface first in sequential DRAM bit growth.