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Global Commodity Intelligence

Q2 2025 | APRIL - JUNE

Critical Update on Memory and Storage Market Dynamics

Recent updates from Micron Technology indicate that the memory and storage markets are entering a new phase of recovery, with sustained growth anticipated through calendar years 2025 and 2026. Micron has reported stronger-than-expected demand across multiple business segments, leading to adjustments in product pricing.

The expanding adoption of AI-related applications and enabling technologies is driving this increase in demand. Micron products play a critical role in industry innovations, and the announced pricing changes reflect both current market conditions and the growing strategic importance of these solutions. Pricing adjustments also reflect the organization's ongoing investments in advanced technologies and increased manufacturing capacity.

In response to these market developments, Micron has introduced the following policy updates:

All new quotes issued through the Model N and CPQ platforms will reflect the latest market conditions and supply considerations.
Existing price quote validity periods will not be extended; however, Micron will honor all open debits through their stated expiration dates.
Debit validity for High-Volume Manufacturing (HVM) and selected legacy product lines will be shortened to 30 days.
Backlog pricing will be automatically updated to reflect any future effective price changes.
Orders that exceed forecasted quantities or allocated supply may be subject to price increases or expedited fees.
Purchase orders without a confirmed Material Available Date (MAD) are not guaranteed; shipment timelines may be adjusted based on availability.
Orders with unconfirmed MADs and requested delivery dates beyond 45 days may be canceled, requiring reissuance if demand remains active.

Following Micron’s recent price increases, there is speculation that other major memory suppliers such as Samsung Electronics and SK Hynix may also raise prices to maximize annual profitability.

Internal analysis also highlights ongoing shifts in product focus. High Bandwidth Memory (HBM) remains heavily booked, with demand from hyperscalers and enterprise customers. Micron is reportedly fully booked for HBM in calendar year 2025 and already in discussions for 2026, prompting them to evaluate a potential reallocation of production resources toward HBM. This may result in a reduced focus on NAND, NOR, and legacy DRAM technologies. While no final decision has been made, we assess the likelihood of this transition occurring as moderate, at approximately 50%.

Accurate demand forecasting is becoming increasingly crucial as organizations align their supply strategy with the evolving dynamics of emerging markets. While alternative inventory sources such as distribution channels remain available, Micron’s recent actions suggest a proactive effort to rebalance market conditions and enhance supply stability.

Recommended Actions

To ensure continued supply and minimize disruption, buyers are encouraged to:

Collaborate closely with internal stakeholders to develop detailed, long-term forecasts that support future supply commitments.
Regularly confirm Material Availability Dates (MADs) to help prevent order cancellations.
Monitor internal inventory levels and distribution markets to identify and address any gaps, thereby mitigating potential pricing impacts.

Alignment with Previous Jabil Guidance

Many of these developments were anticipated in our December 2024 publication, "A Changing Market Ahead – A Jabil Point of View (POV)." That analysis forecasted a tighter supply environment by mid-2025, emphasized the need for extended demand forecasting, and identified vulnerabilities tied to unplanned demand surges—particularly within AI-related product categories. Micron’s latest actions further validate the trends outlined in our earlier report.

For questions or support, please contact the commodity management team.