Samsung Secures 70% of Memory via Long-Term Deals
Samsung locks in 70% of memory production through five-year agreements as the company forecasts a significant supply shortage by 2027.
Samsung is shifting its memory production strategy by securing up to 70 percent of output through five-year long-term agreements. These contracts utilize a rolling structure for automatic one-year extensions, with five major customers currently signed and five more nearing finalization. This move comes as Samsung predicts a memory shortage in 2027, with new capacity not expected until 2028. In the high-growth AI sector, Samsung anticipates HBM4 revenue will more than triple in Q3 2026; notably, AMD utilizes Samsung HBM4 chips for its Instinct MI455X. The memory division now drives nearly all of Samsung's Q2 2026 operating profit, supported by server SSDs which generate over 60 percent of NAND revenue. While competitors like Micron pursue long-term deals in automotive and industrial sectors and SK Hynix sees rising NAND demand, Samsung's contract-heavy approach aims to stabilize supply ahead of the projected deficit.