Mehrotra said customer prepayment commitments tied to long-term supply contracts have reached $32 billion, with 26 strategic agreements expected to cover over 35% of revenue through 2030.
CEO Sanjay Mehrotra said on the earnings call that customer financial commitments, mostly cash prepayments tied to long-term supply contracts, have climbed to $32 billion. Micron has now signed 26 strategic customer agreements that Mehrotra estimates will cover more than 35% of its revenue through 2030.
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Mehrotra expects memory supply to improve only gradually in 2028 and says it is unclear when supply and demand will rebalance.
CEO Sanjay Mehrotra expects supply to improve gradually in 2028, though he has said it is unclear when supply and demand will come back into balance.
Mehrotra expects memory supply-demand to be tighter in 2027 and 2028 than in 2026, with NAND remaining supply constrained in both years.
Micron (MU) CEO Sanjay Mehrotra said he expects memory supply and demand conditions to be tighter in 2027 and 2028 than in 2026. He sees NAND staying supply constrained in both years.
Mehrotra said memory supply-demand will be much tighter in 2027 and 2028, with over 75% of fiscal 2027 output already committed.
Micron CEO Sanjay Mehrotra told investors that supply-demand conditions will be "much tighter" in calendar 2027 and 2028 than they were this year. More than 75% of Micron's planned fiscal 2027 output is already committed, he said, with new customer conversations now centred on 2028 volumes.
Mehrotra told investors memory shortages will persist well beyond 2028 even as Micron adds capacity such as the Idaho One and Tongluo fabs.
Mehrotra has gone further than most of his peers in saying how long this lasts: memory shortages, he told investors, will persist well beyond 2028 even as Micron brings new capacity online, including its Idaho One fab expected around mid-2027 and the Tongluo site in Taiwan targeting late 2027 into 2028 output.
Mehrotra said Micron's HBM capacity is sold out through 2026 and he expects fiscal 2027 to be even stronger.
CEO Sanjay Mehrotra told analysts that HBM capacity is sold out through 2026 and that he expects fiscal 2027 to be even stronger.