$Micron Technology(MU)$  Micron announced its supply chain agreements, with $General Motors(GM)$  being the only publicly named partner. The agreements include binding volume commitments, take-or-pay terms, and cash deposits. They also set an upper price cap tied to market levels from April to June, with a contractual price floor for the full term. Next-gen products like HBM, DDR6, and LPDDR6 are priced separately through negotiation.

The 16 SCAs lock up about 20% of DRAM and 33% of NAND output, with a goal of over 50% of total revenue under such agreements. Likely other partners include Anthropic, $NVIDIA(NVDA)$ , and AMZN.

14 of the 16 clients have a cumulative revenue commitment of around $100 billion at minimum prices over the remaining term, with cash deposits and financial commitments totaling $22 billion. Micron's remaining performance obligation is over $100B+.

It's worth noting that SK hynix is now adopting contracts that remove the traditional industry price cap, allowing spot market increases to be fully reflected in contract pricing during shortages. This shift is to better capture profitability in upcycles. Long-term contract durations are also lengthening, with SK hynix and Samsung moving from 1-year to 3-5 year terms. Micron has already been using long-term contracts in its SCAs.

$Roundhill Memory ETF(DRAM)$