Samsung weighs multi-year deals to ease memory chip crunch fears

Published Wed, Mar 18, 2026 · 12:13 PM

[SEOUL] Samsung Electronics is considering a shift towards multi-year contracts for memory chips, a much longer timeframe than is typical that may help stabilise supply and ease concerns about a shortage of the essential components.

The company is considering lengthening contracts from the current quarterly or annual agreements to as much as three to five years, co-CEO Jun Young-hyun told shareholders at the company’s annual general meeting. That’s as demand for artificial intelligence (AI) memory chips is expected to continue surging in 2026, he said.

Samsung shares soared as much as 6.5 per cent on Korea Exchange, extending gains for the third session and lifting other group stocks. Samsung C&T and Samsung Life Insurance surged as much as 8.9 per cent and 13 per cent, respectively.

SK Hynix, Samsung and Micron Technology together dominate the supply of memory chips globally. The three have shifted production in recent years towards a specialised form of memory intended for use in Nvidia’s in-demand AI accelerators, leading to a shortfall in output of more conventional storage.

That deficit is beginning to hammer profits, derail corporate plans and inflate price tags on everything from laptops and smartphones to cars and data centres, and many expect the crunch to worsen before it improves. SK Hynix is preparing to outline measures to help stabilise prices, SK Group chairman Chey Tae-won said this week, without elaborating.

Chey said that he expected that global shortage to persist another four to five years because of endemic constraints in semiconductor production. BLOOMBERG