Korean media: Samsung has 75 to 80% of next year's memory supply locked in long term contracts
[EXCLUSIVE] 80% OF SAMSUNG ELECTRONICS’ SUPPLY VOLUME FOR NEXT YEAR IS COVERED BY LONG-TERM CONTRACTS According to Korean media reports, Samsung Electronics has already secured long-term agreements (LTAs) covering 75–80% of its memory supply volume for next year, including high-bandwidth memory (HBM). It has reportedly finalized most of its contracts with major tech companies, including NVIDIA, Google, and Microsoft. SK hynix and U.S.-based Micron are also moving quickly to lock in volumes, signing a series of large-scale long-term contracts with key customers. Samsung Electro-Mechanics is also reportedly close to signing an LTA worth KRW 700 billion to supply multilayer ceramic capacitors (MLCCs) to Delta Electronics, a Taiwanese power electronics company.
Context
If accurate, most of Samsung's 2027 memory output, including HBM for AI chips, is already spoken for, a sign that AI buyers expect shortages and are paying for guaranteed supply.
Memory makers have been moving big customers from quarterly pricing to multiyear long term agreements as AI data centers drive demand for DRAM and high bandwidth memory. In July, TrendForce reported that Samsung was aiming to put 60 to 70% of its capacity under such contracts, citing Korean media. The new figure comes from a Korea Economic Daily report on October 9.
Deep dive
The Korea Economic Daily reported on October 9 that Samsung Electronics has secured long term supply agreements covering about 75 to 80% of its planned memory production for next year. According to the report, technology companies including Nvidia, Google and Microsoft are seeking to lock in supplies for five years or more because of surging demand for AI infrastructure.
Jukan, an account that tracks the Korean chip industry, summarized the report on X. His post says the agreements include high bandwidth memory, that most contracts with major tech companies are reportedly finalized, and that SK hynix and Micron are also signing large long term contracts with key customers. He also cites a report that Samsung Electro Mechanics is close to a deal worth about 700 billion won to supply multilayer ceramic capacitors to Delta Electronics.
The figure is higher than the 60 to 70% target TrendForce reported in July, when it said Samsung had signed agreements with five large data center customers, reportedly including AWS, Microsoft and Google. Samsung has not publicly confirmed the new figure, and contract prices and volumes have not been disclosed. KED notes that such agreements could leave manufacturers exposed if the memory cycle turns.
What to expect next
Watch Samsung's next earnings call for an official update on how much of its capacity is under long term contracts, and whether SK hynix and Micron report similar coverage.
The open questions are pricing and terms, which have not been made public. If most supply is committed, buyers without contracts could face tighter availability and higher prices for DRAM and HBM next year, which would matter for anyone building AI servers.