Samsung locks in years of chip supply as shortages are expected to persist to 2028

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Forward-looking: Samsung Electronics is locking in long-term chip orders as AI-driven demand continues to exceed available production, and the company expects those constraints to persist for years. Shortages are likely to deepen in 2027 and carry into 2028, Jaejune Kim, executive vice president of Samsung's memory business, told analysts. To manage that imbalance, Samsung has signed long-term supply agreements with the five largest global data center operators and is close to finalizing deals with five more.

Kim said those contracts will run for at least five years and account for 60% to 70% of the company's future capacity. The agreements include upfront payments and floor pricing, giving Samsung more predictability as it invests heavily in advanced chip production.

The approach reflects how AI infrastructure is changing the memory market. Large cloud and data center companies are no longer relying on short-term purchasing cycles. Instead, they are securing guaranteed access to key components, particularly high-bandwidth memory, or HBM.