Micron Just Eliminated Its Biggest Risk With This Brilliant Move, and Investors Are Loving it - The Motley Fool

Micron Technology delivered exceptional third-quarter results, with revenue jumping 346% year-over-year to $41.5 billion, surpassing estimates of $35.3 billion. Adjusted earnings per share surged to $... Read original →

Micron’s Strategic Customer Agreements (SCAs) are rewriting memory’s cyclical playbook. Technically, long-term HBM/DRAM commitments are forcing TSMC and Samsung to accelerate CoWoS and TSV packaging capacity. Compliance-wise, take-or-pay structures enhance supply chain resilience but risk CFIUS scrutiny—especially when customers include firms from Taiwan, China or mainland China. Competitively, Samsung may be compelled to adopt similar contracts to retain NVIDIA and Apple, while SK Hynix leverages its HBM3E lead to lock in Microsoft and Meta. Over the next 18 months, SCAs will shift memory makers from price-takers to system-level partners, anchoring gross margins above 70% and raising entry barriers—cementing a U.S.-Japan-Korea triad in advanced memory.