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The suckers are those companies agreeing to this deal. 'Your margin is my opportunity' means prices will fall eventually once more production come on line. The
by small_model 3mo ago
The suckers are those companies agreeing to this deal. 'Your margin is my opportunity' means prices will fall eventually once more production come on line. The invisible hand will slap their faces
- try-working 3mo agonobody is agreeing to what the headline says. the SCAs are just a hedge against even higher prices. the agreements will be broken the second prices drop.
- regularfry 3mo ago"Eventually" doing a lot of work. Micron (and implicitly anyone signing this deal) are betting demand is going to outstrip capacity for several years, taking into account what new capacity can be brought online and when.
- rob74 3mo agoWell, apparently those companies believe memory prices will continue to rise, so they'd better lock in supply at the current (high) prices. We'll see if they're right...
- Arnt 3mo ago"... involve a commitment to buy a certain quantity of product and pay for it in a pricing band that has a floor and a ceiling price. The floor price covers the historically high gross margins mentioned above, and the ceiling price means those who commit to an SCA are insulated if memory prices go even higher." So clearly 16 large buyers consider it likely that prices will go even higher. How likely? >10% chance? Likely enough to sign an agreement.
- ThrowawayR2 3mo agoIt's a five year agreement. Good luck financing, constructing, equipping, and bringing new memory fabs online in less than 5 years.
- polski-g 3mo agoMore production can only come online if the producers have money to do so. Turns out Apple fucked Micron in 2023 so they couldn't expand capacity: https://9to5mac.com/2026/06/25/micron-exec-suggests-apples-aggressive-purchasing-tactics-helped-fuel-memory-shortage/ https://9to5mac.com/2026/06/25/micron-exec-suggests-apples-a...