MU · 10-K · 2026A · Full report

Strategic Customer Agreements

MICRON TECHNOLOGY INC · 2026-10-09 · Importance 58 · Surprise 42 · Contradicted

Micron entered strategic customer agreements in the third and fourth quarters of 2026 and expects additional agreements as customers seek long-term access to advanced memory technology and supply. The agreements provide contracted supply assurance and pricing visibility to customers while improving Micron’s business visibility and stability. They are structured as take-or-pay commitments for specific multi-year volumes, with fixed or periodically negotiated pricing generally subject to minimum and maximum bands. Customer deposits and letters of credit support these commitments, with $12.75 billion of deposits received in 2026 and approximately $7 billion of letters of credit issued or committed as of September 3, 2026.

Key facts

• In 2026 Micron received customer cash deposits of $12.75 billion in connection with strategic customer agreements; nearly all deposits are scheduled to be repaid between 2029 and 2031. source
• Aggregate amount of letters of credit issued or contractually committed to be issued by third-party financial institutions was $7 billion as of September 3, 2026. source
• In 2026 Micron entered into, and expects to continue to enter into, strategic customer agreements that are structured as take-or-pay agreements with binding commitments for specific volumes over multi-year contract terms, often including substantial customer deposits and price bands. source
• Micron expects gross margins from strategic customer agreements with price bands, even at floor pricing levels, to yield gross margins meaningfully above Micron's peak quarterly margins in any past cycle. source

Impact estimates