00:00Over 75% of the chips Micron will make next year are already sold.
00:04And they haven't even been built yet.
00:06It's all down to long-term contracts, customers locking in years of supply in advance.
00:10In just three months, the number of contracts jumped from 16 to 26.
00:14That's a 63% increase.
00:16The minimum value tied up in these deals, $150 billion.
00:20Customers are also putting down prepayments up from $22 billion to $32 billion.
00:24And 75% of contracted revenue already has prices locked in.
00:28So even if prices drop, there's a floor.
00:31They won't fall through it.
00:33Samsung and SK Hynix are heading the same direction.
00:36Samsung said back in July that once ongoing negotiations close,
00:4060 to 70% of its DRAM production capacity will be under long-term contracts.
00:45SK Hynix has already wrapped up deals with 10 customers.
00:48But there's a catch these contracts also cap the upside.
00:51If prices spike, they won't capture the full gain.
00:54Micron is also ramping CAPEX by over 85%.
00:56More supply is coming.
00:58What do you think?
00:59Drop a comment below.
