Samsung Locks 70% of Memory Capacity in Long-Term Deals as AI Fuels HBM Boom
Samsung is reportedly securing a major share of its memory production for long-term supply agreements as demand for high bandwidth memory continues to surge across the artificial intelligence industry. According to a new report from Korean media, the company has already committed around 70% of its memory chip production capacity to long-term agreements that extend as far as 2031.
The rapid expansion of AI data centers has created intense demand for HBM, a premium type of memory used in advanced AI accelerators and high-performance computing systems. These chips are essential for training and running large AI models because they deliver far greater bandwidth than conventional memory.
Samsung’s long-term agreement customers reportedly include major technology companies such as Microsoft, Google, and NVIDIA. These firms are racing to secure stable access to HBM supply as competition for AI hardware intensifies.
One of the biggest advantages of these long-term contracts is pricing. The report claims that customers buying through long-term agreements are receiving significant discounts compared with spot market prices. For example, the spot price of a 36GB HBM3E module is said to be around 2.87 million Korean won, while similar products supplied through long-term agreements are priced between 500,000 and 700,000 won.
That difference highlights how valuable early supply commitments have become in the AI memory market. With HBM supply remaining tight, companies that secure long-term contracts may gain a major cost advantage over competitors forced to buy at market prices.
The move also reflects a major shift in the memory chip industry. Memory markets have historically been highly cyclical, with prices rising and falling sharply depending on supply and demand. Long-term agreements may reduce some of that volatility by giving manufacturers clearer visibility into future demand and giving customers more predictable access to critical components.
The growing focus on HBM is also affecting the wider DRAM market. HBM is built by stacking multiple DRAM layers together, meaning that higher HBM production can reduce the amount of DRAM available for other products. As manufacturers prepare for HBM4, the pressure could increase further because newer HBM generations require more DRAM layers per module.
HBM4 is expected to play a key role in the next generation of AI processors, but it also requires more advanced manufacturing capacity. The report notes that a 16-layer HBM4 model could cost around 4.8 million Korean won, reflecting the complexity and high demand surrounding next-generation AI memory.
To respond to rising demand, Samsung and SK hynix are reportedly exploring ways to expand memory production capacity. Samsung is said to be considering converting its S5 facility at the Pyeongtaek campus into a memory manufacturing site. SK hynix is also reportedly looking at a possible collaboration with a Japanese company to establish a joint production facility.
The situation underlines how AI is reshaping the global semiconductor supply chain. HBM has quickly become one of the most important components in the AI hardware race, and memory manufacturers are adjusting their strategies to keep up with demand from cloud providers, chip designers, and data center operators.
For Samsung, locking in long-term customers could provide a stable revenue stream for years while strengthening its position in the competitive HBM market. For major AI companies, securing supply early may be just as important as developing faster processors, since memory bandwidth is now one of the biggest factors determining AI performance.
As AI infrastructure continues to expand worldwide, demand for HBM3E, HBM4, and future memory technologies is likely to remain strong. Samsung’s reported long-term agreements show that the battle for advanced memory supply is already well underway, and it may shape the next phase of growth in the semiconductor industry.
