A South Korean report says Samsung has locked up to 70% of its memory chip supply in long-term agreements that run through 2031, including deals with companies such as NVIDIA and Microsoft.
Memory has historically been a cyclical market: prices spike when supply is tight and plunge when supply recovers, preventing makers from sustaining peak margins over long periods.
How AI demand is reshaping memory markets
The report says AI-driven demand has fundamentally changed that dynamic. Demand continues to skyrocket and, the report adds, there isn’t going to be enough supply for at least a few years. As a result, memory manufacturers are prioritizing production of higher-margin HBM chips for AI over commodity DRAM, a shift that is putting further upward pressure on prices.
Manufacturers are also signing long-term agreements at prevailing peak prices with rigid price floors, measures that the report says will help preserve healthier margins even if market prices fall. These agreements require companies to lock up supply to meet contractual commitments.
According to the report, Samsung has allocated 70% of its memory production capacity to fulfill long-term contracts with partners such as NVIDIA and Microsoft through 2031.
