Samsung Electronics has locked in approximately 80% of its memory chip production capacity for next year through long-term agreements, with tech giants vying for the remaining 20%.

Samsung Electronics has reportedly secured buyers for approximately 80% of its memory chip production, including High Bandwidth Memory (HBM), for next year through long-term supply agreements, the Korea Economic Daily reported earlier this week. Global tech giants such as NVIDIA, Google, and Microsoft have signed chip supply agreements with Samsung covering more than five years, while companies that have not yet finalized contracts are reportedly vying for the remaining 20% of capacity.

Samsung Electronics stated during its Q2 earnings call that almost all major customers are requesting long-term agreements and admitted difficulty in meeting all demand. This trend has spread from memory chips to the entire AI infrastructure supply chain, covering multi-layer ceramic capacitors (MLCC), flip-chip ball grid array (FC-BGA) substrates, transformers, power equipment, and cooling systems. Market bargaining power is rapidly shifting towards suppliers, with 20% to 25% prepayments and mandatory purchase clauses becoming increasingly common.