[News] Micron Expands Long-Term Memory Deals with 7 Auto Clients; Qualcomm, Harman Draw Attention
Micron is expanding its Strategic Customer Agreements (SCAs) with a fresh batch of automotive partners as it moves to secure more long-term demand visibility. The company, in a press release, announced long-term supply deals with seven automotive customers, with Qualcomm and Samsung subsidiary Harman drawing particular attention, according to Reuters and South Korean media outlet Green Economy News.
Micron has signed SCAs with key Tier 1 partners, including Qualcomm, Visteon, HARMAN, JOYNEXT, DENSO, Astemo and Hyundai Mobis. The memory chips, as noted by Reuters, are deployed across data centers, consumer electronics and vehicles, powering AI-driven functions ranging from advanced driver assistance systems (ADAS) to digital cockpits.
Notably, Qualcomm, best known for its smartphone chips, is indeed making inroads into automotive: the sector was the standout performer in its 2Q26 earnings, delivering the strongest growth across all categories at +38% YoY, reaching 10% of total QCT revenue. According to The Elec, its Snapdragon Digital Chassis combines chips and software to support connected vehicles, digital cockpits and autonomous driving, including Snapdragon Cockpit, Snapdragon Auto Connectivity and Snapdragon Ride for ADAS.
Beyond Qualcomm, Samsung subsidiary Harman has also drawn attention. Green Economy News notes that Harman has operated independently since Samsung’s 2017 acquisition, with CEO Christian Sobottka saying partnerships with key technology providers such as Micron will support the development of increasingly intelligent vehicle platforms.
The latest automotive SCAs build on Micron’s existing relationships with major automakers, following previous long-term supply agreements with companies such as General Motors and Ford.
Micron’s SCA Expansion
Unlike traditional annual long-term agreements (LTAs), SCAs typically lock in both pricing and supply volumes for three to five years. According to Investing.com, Micron has signed 16 SCAs covering roughly 20% of its DRAM output and about one-third of its NAND volumes over the contract period. Meanwhile, CEO Sanjay Mehrotra, cited by CNBC, also noted that these strategic customer agreements are expected to account for roughly half — or potentially more — of Micron’s total revenue once fully implemented.
The growing adoption of long-term memory agreements is also beginning to reshape pricing dynamics. Citing analysts, Munhwa Ilbo reports that spot prices are expected to remain firm amid tight supply, while contract prices under LTAs may rise more gradually. However, analysts noted that this reflects suppliers’ strategy to sustain high profitability over the long term, rather than weakening pricing power.
The trend aligns with TrendForce’s latest memory pricing survey, which points out that several U.S.-based CSPs have entered into multi-year long-term agreements (LTAs), which restrict suppliers from raising prices for these clients. Consequently, TrendForce predicts that server DRAM contract prices will rise by 13–18% quarter-over-quarter in 3Q26.
According to TrendForce, the primary source of server DRAM price increases will shift toward customers without LTAs, as well as incremental supply sold outside LTAs to existing LTA customers.
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(Photo credit: Micron)
