IT News on October 12th: According to a report by the Korean Economic Daily, industry insiders revealed that Samsung Electronics has secured nearly 80% of its storage chip production capacity for next year through long-term supply agreements, including high-bandwidth memory HBM.
It is reported that global technology giants such as NVIDIA, Google, and Microsoft have begun placing orders with Samsung, with the locked-up chip supply periods generally exceeding five years. This trend of signing long-term supply agreements has spread from the semiconductor industry to the entire AI hardware supply chain. Industry insiders point out that the AI components industry is accelerating its shift from the traditional spot trading model to a more certain "order-oriented" industry.
Samsung once stated during the second-quarter financial report conference call, "Almost all of our core customers are strongly requesting long-term supply agreements, and it is currently very difficult for the company to fully meet all of their demands for such agreements."
IT Home has noticed that at the same time, other storage chip giants, including SK Hynix and Micron Technology, have also successively finalized large-scale long-term supply agreements with their core customers.
Industry analysts point out that the widespread adoption of long-term supply agreements essentially reflects the urgent need of tech giants to ensure the stability of their supply chains, which aligns closely with the upstream suppliers' desire to reduce high investment risks.
