Samsung weighs multi-year deals to ease memory chip crunch fears

SK Hynix Inc., Samsung and Micron Technology Inc. together dominate the supply of memory chips globally.

Samsung Electronics Co. is considering a shift toward multi-year contracts for memory chips, a much longer timeframe than is typical that may help stabilize supply and ease concerns about a shortage of the essential components.

The company is considering lengthening contracts from the current quarterly or annual agreements to as much as three to five years, co-CEO Jun Young-hyun told shareholders at the company’s annual general meeting. That’s as demand for AI memory chips is expected to continue surging in 2026, he said.

Samsung shares soared as much as 6.5% on Korea Exchange, extending gains for the third session and lifting other group stocks. Samsung C&T Corp. and Samsung Life Insurance Co. surged as much as 8.9% and 13%, respectively.

SK Hynix Inc., Samsung and Micron Technology Inc. together dominate the supply of memory chips globally. The three have shifted production in recent years toward a specialized form of memory intended for use in Nvidia Corp.’s in-demand AI accelerators, leading to a shortfall in output of more conventional storage.

That deficit is beginning to hammer profits, derail corporate plans and inflate price tags on everything from laptops and smartphones to cars and data centers — and many expect the crunch to worsen before it improves. SK Hynix is preparing to outline measures to help stabilize prices, SK Group Chairman Chey Tae-won said this week, without elaborating.

Chey said he expected that global shortage to persist another four to five years because of endemic constraints in semiconductor production.