Micron Locks In Five-Year Take-or-Pay Memory Deal with GM
MU•Micron has signed a five-year take-or-pay supply agreement with General Motors for DRAM and NAND memory chips, locking in minimum purchase volumes through 2028. The company will roll out its take-or-pay model to additional automotive and industrial OEMs to stabilize factory utilization and revenue visibility.
1. Long-Term GM Supply Deal
Micron has entered a five-year take-or-pay contract with General Motors, securing committed purchases of DRAM and NAND memory chips through 2028. Under this arrangement, GM agrees to buy minimum volumes each quarter, providing Micron with predictable demand and reducing inventory risks in its automotive channel.
2. Expansion of Take-or-Pay Strategy
Building on the GM agreement, Micron plans to extend its take-or-pay supply model to other automotive and industrial customers. This strategy aims to smooth production scheduling, improve wafer fab utilization rates and enhance revenue visibility across its capital-intensive memory business.
