Samsung Electronics is weighing a shift toward multi-year memory chip contracts, moving away from traditional quarterly or annual agreements. Co-CEO Jun Young-hyun announced the proposal at the company’s annual meeting, suggesting terms could extend between three and five years.
The announcement triggered a rise in Samsung’s share price. This strategic pivot aims to stabilize the volatile memory market as surging demand for artificial intelligence fuels concerns over potential supply shortages.
The longer-term agreements are designed to provide customers with greater predictability regarding both supply and pricing. This approach seeks to mitigate risks from market fluctuations for these essential components.