Samsung Secures 70% of Memory Demand through Long-Term Agreements by 2031
Samsung has sold 70% of its memory production capacity through long-term agreements, primarily with clients like Microsoft, Google, and NVIDIA. This move reflects a significant shift in the memory market, impacting pricing and supply dynamics amid growing demand for HBM technology.
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Samsung has committed 70% of its memory production capacity through long-term agreements (LTAs) with major clients including Microsoft, Google, and NVIDIA. These LTAs are essential for stabilizing demand visibility for manufacturers while ensuring chip availability in a challenging supply environment.
The transition to HBM4 requires more DRAM, exacerbating pressure on the DRAM market as production capacity is redirected. HBM3E modules' current spot price can exceed four times the long-term price, with a 36 GB module priced at approximately 2.87 million won on the spot market compared to 500,000-700,000 won in LTAs. As demand for HBM in data centers rises, the increasing DRAM requirement for each HBM generation limits supply for PCs and smartphones, heightening price and availability pressures.
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