To maintain price stability, memory chip giant Micron has launched a new pricing trial
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Update time : 2022-05-18 13:48:34
Memory chip maker Micron Technology (MU.US) announced on Thursday that it is experimenting with a new chip pricing model called a "forward pricing agreement," aimed at stabilizing wild price swings that have plagued the industry for a long time.
Sadana told the company's investor day event: " I'm very excited to announce that one of the top 10 customers has signed this new pricing agreement with us, and a three-year deal will generate annual revenue of more than $500 million.” He declined to predict how much of the long-term deal with customers would turn to this new pricing model, stressing that it was an "experiment"."He said that the current long-term agreements are based on an actual quantity base rather than a price, and that forward pricing agreements generally cover trading volume and pricing. When asked whether the contract was enforceable, Sadana acknowledged that one party or the other always stood on the wrong party at the price.Sadana also said that Micron did not intend to advance forward pricing agreements by lowering gross margins. "There are definitely ups and downs, but the benefits of finally reaching such a deal outweigh the risks."Sadana representation.
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