Can storage market conditions persist? Let's look at how aggressive Micron's new agreement is.

1. Even if the agreement is signed, payment is required even if not taken: Customers must purchase a specific quantity of products during the agreement period (3-5 years). If actual purchases fall below the promised minimum, the customer still must pay the corresponding amount (the agreement cannot be canceled).
2. Prices must be set now: A price floor and ceiling are established. Customers cannot refuse payment due to market price fluctuations.
3. Large guarantee deposits required upfront: Customers must provide financial guarantees such as cash deposits + letters of credit. The 16 SCAs total approximately $22 billion in performance guarantees (about $18 billion in cash deposits). Based on the minimum price, the remaining contract period guarantees minimum revenue of approximately $100 billion.

Summary: You need good credit to make a deposit. Over the next 3-5 years, if prices fall, you cannot negotiate. Once production is done, you have to pay; even giving up the deposit won't work. (The contracts signed so far amount to over $100 billion😀😀)