Micron Signs a Major Long-Term Supply Agreement with SanDisk Amid Surging Demand for AI-Driven Memory
Against the backdrop of surging demand for memory driven by artificial intelligence (AI), U.S. memory chip manufacturers Micron (Micron) and SanDisk have both signed massive long-term supply agreements. Micron. disclosed that it has signed 16 strategic customer agreements, causing its remaining performance obligations to jump from approximately $5 billion to approximately $100 billion.SanDisk has also signed five multi-year supply agreements, three of which have minimum revenue commitments totaling $42 billion. These agreements are designed to mitigate cyclical fluctuations in the memory market and lock in strong demand from AI servers for high-bandwidth memory (HBM), DRAM, and NAND chips.Market intelligence firm TrendForce forecasts that DRAM contract prices will rise by 93%–98% in the first quarter of 2026 and by 58%–63% in the second quarter, while NAND flash prices are also expected to remain strong.Although the stock prices of both companies have pulled back somewhat over the past month (Micron. down about 20% and SanDisk down about 30%), they are both viewed as beneficiaries of AI-driven memory demand.
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