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The Economic Times
The Economic Times
Technology

Micron joins rivals pitching AI deals as cure for memory's boom-bust cycle

Memory chipmakers have for decades been trapped in boom-bust cycles, with capacity ​buildouts hitting the market just as demand craters. ​Micron, Samsung and SK Hynix are now trying to convince investors this time is different, ​arguing long-term deals will keep cash flowing even if the datacenter boom bursts.

Micron said on Wednesday customers such as Nvidia had committed $22 billion to lock in supplies of memory chips, playing up huge growth in five-year "take-or-pay" deals that require clients to either buy its chips or hand over cash.

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