Samsung reportedly locks 70% of memory production into long-term AI chip deals

Samsung has reportedly committed around 70% of its memory production capacity to long-term supply agreements as demand for high bandwidth memory keeps rising across the AI industry. These contracts reportedly extend as far as 2031 and give major technology companies access to memory chips at prices well below current spot-market levels.

According to SEDaily, Samsung’s major long-term agreement customers include Microsoft, NVIDIA, and Google, which are investing heavily in AI infrastructure and need large supplies of HBM for accelerators and data centers.

The growing demand for HBM is also tightening the wider DRAM market because manufacturers use multiple DRAM dies to build each HBM package. Newer HBM4 products require even more DRAM layers, which reduces the amount of conventional memory available for other products and puts additional pressure on supply.

HBM spot prices remain far above contract prices

The reported pricing difference between long-term contracts and the spot market is significant. A 36GB HBM3E module reportedly costs around 2.87 million Korean won on the spot market, while similar products covered by long-term agreements sell for roughly 500,000 to 700,000 won.

Meanwhile, a 16-layer HBM4 module reportedly costs around 4.8 million won as manufacturers prepare for another increase in AI-related memory demand.

Samsung is also considering converting its S5 foundry facility at its Pyeongtaek campus into a memory production site, while SK hynix is reportedly exploring additional manufacturing capacity through a possible partnership in Japan. These expansion plans show how strongly AI demand is reshaping memory production and long-term supply planning across the semiconductor industry.