Memory Chip Maker Micron Launches New Pricing Experiment for Stability

Memory Chip Maker Micron Launches New Pricing Experiment for Stability
The logo of memory chip maker MicronTechnology at their booth at an industrial fair in Frankfurt, Germany, on July 14, 2015. Kai Pfaffenbach/Reuters
Reuters
Updated:

SAN FRANCISCO—Chipmaker Micron Technology Inc. on Thursday announced it was experimenting with a new pricing model for its chips called forward pricing agreements that would aim to stabilize the steep price fluctuations that plague the industry.

“I’m super excited to announce that a top 10 customer has already signed up on this model with us, a more than $500 million a year of revenue for a three year agreement,” said Sumit Sadana, Micron’s chief business officer at the company’s investor day event.