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- cross-posted to:
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Memory-maker Micron has found a way to keep prices for its products sky-high for another five years, by signing 16 “strategic customer agreements” (SCAs) that include a floor price the company says comes with “a very robust gross margin for Micron, well above our peak quarterly margins in any past cycle.”
Micron CEO, president and chairman Sanjay Mehrotra explained the SCAs in prepared remarks delivered during the company’s Q3 earnings call. He explained that Micron has signed 16 SCAs, most of them covering 2026 to 2030, and that they involve a commitment to buy a certain quantity of product and pay for it in a pricing band that has a floor and a ceiling price. The floor price covers the historically high gross margins mentioned above, and the ceiling price means those who commit to an SCA are insulated if memory prices go even higher.
Hopefully Chinese firms recognize the gap in the market and increase their capacity.
They are scaling up but as with other things they will most likely scale to their inner market first, and then I doubt they’ll subsidize a price depreciation to help westerners when they can get the profits for themselves
Yes, I want some slave labor RAM.
The fact you think high tech silicon manufacturing, so complex to do that only few companies around the world can do it, is a high slave labor sector tell you everything you need to know about your thinking process.
It’s “peasant with a dirty pitchfork”-work, really.
Backyard chip foundries, just like Mao wanted
Maybe it’s time to open up a hipster bespoke ram shop. You may only get 1kb but it will be the most beautiful hand-woven core memory you’ve ever seen.
They make whatever is most profitable as individual companies.
And China as a government, absolutely loves the idea of everyone’s computer usage going thru giant corporations because the Chinese government owns part of every Chinese company and doesn’t need a backdoor since they have a set of keys.
Like, why would they make something that they don’t want and would sell for less profit margin overseas?
Why build for a bunch of broke consumers when there’s a blank check for anything related to data centers right now?
That demand could disappear tomorrow. Personal computers will just get more expensive so prices will keep going up for when they have to switch back.
Why would you ever hope China would save us from this?
Edit:
It seems like people are confused here:
Reason 1 they want to make data center stuff, is just money:
Separate reason #2 to prefer data center stuff as a product, is everything in China goes thru Chinese companies which China controls.
If Chinese consumers have to offload their data processing to large corporations, then since China owns a piece of every corporations, they now see everything people process.
Which is why the next sentence references two reason the Chinese government would want to squash home computing in favor of “cloud computing” thru data centers:
Hey I recommend learning about how the different parts of a computer work what supply chain attacks are and are not realistic before potentially misinforming others. Your concerns are unfounded
Ok .ml, because surely there’s no other reason you’d disagree about China…
I’m .ml because it’s the only large instance that doesn’t require an email for sign up, and it’s primarily for tech enthusiasts and professionals.
At risk of sounding like a meme, ad hominem isn’t a great argument. I don’t want any backdoors on any of my devices and, while it’s unavoidable, it isn’t helpful to just make stuff up instead of understanding.