Samsung Considers Extending Memory Chip Contracts to Address Supply Concerns—Bloomberg

LootboxPhobia · 2026-03-18T06:07:54+00:00

Samsung Electronics is considering shifting toward multi-year memory chip contracts to address intensifying supply shortages and anticipated surging demand from artificial intelligence. This shift could move from short-term agreements to long-term contracts spanning three to five years to enhance supply stability.

LootboxPhobia

2026-03-18 06:07:54

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Investing.com – According to Bloomberg on Wednesday, Samsung Electronics is exploring a shift to multi-year memory chip contracts to move away from the current short-term agreement model, aiming to stabilize supply amid growing concerns over shortages.

Bloomberg quoted Co-CEO Kyung Kye-hyun at the annual shareholders’ meeting, stating that the company is evaluating extending contract durations from the current quarterly or yearly terms to three to five years.

He said this potential change is driven by expectations that demand for AI memory chips will continue to surge through 2026.

Memory chip shortages have begun to impact profits, disrupt corporate plans, and drive up prices across multiple sectors including consumer electronics, automotive, and data centers. Many industry observers expect supply tightness to worsen further before conditions improve.

Competitor memory chip manufacturer SK Hynix is preparing to outline measures aimed at helping stabilize prices. SK Group Chairman Chey Tae-won stated this week that, although he did not provide specific details about planned actions.

Samsung’s stock price surged significantly on Tuesday and Wednesday, with the company expected to benefit further from the memory chip shortage. This week, the company also launched advanced high-bandwidth memory product HBM4E for the AI industry.

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