Bernstein: Memory LTAs Protection Mechanism Underestimated, Storage Cycle Volatility Expected to Narrow

According to TechFlow Research, Bernstein recently released the third report in its Memory LTA series, suggesting that the market's concern that LTAs might once again become "worthless paper" may be misguided. The new generation of LTAs adopts a back-end weighted margin structure, where customer default costs increase as the contract progresses, with core protection value concentrated in the latter half of the contract, coinciding precisely with the industry's downward cycle.