Samsung Electronics has disclosed plans to secure approximately 70% of its memory production under long-term supply agreements (LTAs) by 2031. As surging AI demand drives HBM spot prices to as much as five times contract prices, major customers including Nvidia and Microsoft are increasingly favoring long-term contracts to ensure supply stability.
South Korea's Samsung Electronics has announced plans to lock in approximately 70% of its memory production volume under LTAs by 2031. The company cited the growing sophistication of HBM and rising demand for AI chips as factors behind periods in which spot-market prices have exceeded contract prices.
The transition to HBM4 is intensifying the decline in production yields, while HBM spot prices have risen substantially above HBM3E levels. Analysis from South Korea's semiconductor industry has also indicated that HBM4 prices could be approximately twice those of the previous generation.
Samsung Electronics and SK hynix are expanding production capacity and increasing their LTA ratios to stabilize the supply chain. Information indicates that major contracting customers include global technology giants such as Nvidia, Microsoft and Google.
In terms of the financial outlook, forecasts indicate that both companies' third-quarter results are likely to reach record highs, with Samsung's revenue and operating profit expected to exceed market consensus.