Macronix sees 80% gross margin within reach but warns LTAs could deepen memory downturn

Micron's record 64.4% gross margin underscores its dominance in DDR5 and NAND flash, driving upstream demand for wafer fabrication and packaging services, particularly in Taiwan, China. However, Macronix’s warning about prolonged contract pressures signals a continued downturn in memory pricing. Geopolitical tensions are reshaping supply chains, increasing compliance costs and forcing companies to reevaluate regional production strategies. Competitors may pursue vertical integration or M&A to secure capacity. Over the next 12–24 months, memory price volatility will likely constrain capital expenditure across the industry, especially amid slowing AI and data center demand, setting the stage for further consolidation.