Elon Musk has publicly criticized memory chip suppliers for what he calls "extortionate" pricing during the current DRAM and high-bandwidth memory shortage. While he did not name specific companies, his praise for Micron's "reasonable" approach implies criticism of Samsung and SK hynix. Musk argued that Micron is building long-term customer loyalty by not squeezing buyers today.
The context is a market where memory makers have raised prices severalfold without comparable capacity expansion, leaving supply behind demand. Micron's financials show how lucrative this is: Q4 FY2026 revenue of $54.23 billion and an 81% GAAP gross margin, up from 40% a year earlier. Even mobile and client memory, often seen as lower-margin, brought a 90% non-GAAP gross margin.
Suppliers are now shifting to long-term agreements. Micron has signed 26 strategic customer agreements covering over 35% of expected revenue through 2030, with $32 billion in customer commitments. Samsung has reportedly secured contracts for 75–80% of its planned 2027 memory output, and SK hynix is pursuing similar deals. Analysts expect shortages to last through at least 2028, giving suppliers leverage, but Musk's warning suggests today's pricing could affect relationships when the market eventually rebalances.