Musk criticizes memory chipmakers' pricing, praises Micron

Elon Musk criticized memory semiconductor makers' pricing policies in a post on X on 13 October, saying Micron has shown a reasonable stance on future memory prices while other companies have demanded absurd prices. According to aitimes.com, Musk added that today's customers will never forget this.

Musk called Micron's approach a wise choice to secure long-term customer loyalty. The article reports that he did not name specific companies, but the remarks are read as aimed at Samsung Electronics and SK hynix.

The article states that Musk did not disclose specific prices or supply contract terms.

In its fiscal 2026 fourth quarter, Micron recorded revenue of $54.23 billion and a GAAP gross margin of 81%, up from 40% a year earlier. Its cloud memory segment posted revenue of $16.283 billion with a non-GAAP gross margin of 83%, while data center storage posted revenue of $18.002 billion and a gross margin of 90%. The automotive and embedded segment posted revenue of $6.824 billion and a gross margin of 84%, and the mobile and client segment posted revenue of $13.114 billion with a non-GAAP gross margin of 90%.

Micron has signed 26 strategic customer agreements covering more than 35% of expected revenue through 2030, with $32 billion in committed financial support, mostly cash deposits. Samsung Electronics is said to have secured 75-80% of its planned 2027 production volume through long-term contracts, and SK hynix is reportedly pursuing similar contracts as AI infrastructure investment absorbs memory supply.

The article states that the memory semiconductor market has shifted to a supplier-driven market as AI infrastructure investment surged, and that some market forecasts see the supply-demand imbalance lasting until at least 2028.