Samsung Electronics and SK hynix are negotiating multi-year supply agreements with major clients including Google and Microsoft.
Executives from both South Korean firms confirmed the shift away from traditional short-term contracts of less than one year. The proposed deals will span three to five years, covering high-bandwidth memory (HBM) and conventional DRAM chips.
These long-term agreements offer chipmakers increased stability in a notoriously cyclical market. For Big Tech buyers, the deals secure the essential components required for expanding AI-driven infrastructure.
The strategic move aims to mitigate supply-demand uncertainties as global AI investments continue to surge.