Micron locks in historically high memory prices for five years - The Register

Micron Technology has just cemented its future, locking in an astounding $100 billion in long-term memory supply deals, including $22 billion in prepayments, that guarantee historically high prices for the next five years, stretching from 2026 to 2030. This aggressive move, fueled by a staggering fifteen-fold profit surge and nearly quadrupled quarterly revenue, marks a fundamental shift in the semiconductor giant's business model, heavily de-risking its notoriously cyclical market. The surge isn't just a win for Micron; it's a clear signal of the insatiable, 'non-cyclical' demand for High Bandwidth Memory (HBM) from the Artificial Intelligence (AI) sector, with Micron's HBM capacity already completely sold out through 2026. This intense demand, significantly outpacing supply, has pushed memory chip prices to unprecedented levels, with contract prices for conventional DRAM alone surging 90-95% in Q1 2026. As a result, Micron and rivals like SK Hynix and Samsung Electronics are aggressively investing billions in new facilities and increased capital expenditures to boost HBM production, transforming the memory market from a commodity to a strategic asset. Expect this AI-driven memory supercycle to continue, with industry analysts forecasting the global memory chip market to quadruple in 2026, reaching nearly $1 trillion. While Micron's long-term contracts aim for revenue stability, the ongoing supply-demand imbalance means high prices are likely to persist, possibly through 2027 or even 2028. Watch for how competitors respond with their own long-term deals and how this sustained investment shapes the cost and accessibility of next-generation AI infrastructure globally.