Samsung Electronics Plans Long-Term Contracts for Up to 70% of Memory Production Capacity

Samsung Electronics announced today (July 30) that it plans to pursue long-term supply agreements (LTAs) for 60% to 70% of its total memory production capacity (CAPA).

During its earnings conference call today, Samsung revealed the plan, stating, "As demand for securing mid- to long-term artificial intelligence (AI) infrastructure surges and the perception spreads that the memory supply shortage will be prolonged, many clients are requesting multi-year supply contracts."

The company added, "With ongoing requests from clients for additional supply in both DRAM and NAND, and continuous increases in market prices, almost all customers are asking for multi-year supply contracts. We are facing difficulties in meeting all of our customers' requests within our given capacity."

Samsung stated that it has already completed contracts with its top five global data center clients and is in the final stages of negotiations with five major customers linked to AI demand.

It further emphasized, "The number of clients with multi-year supply contracts will increase over time. Once the contracts currently under negotiation are finalized, the multi-year contract volume will easily achieve the 60% to 70% level of our CAPA based on current mid- to long-term production plans."

(Photo provided by Pyeongtaek City, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.