Samsung Electronics is signing more long-term agreements (LTAs) as customers seek to secure memory chip supplies several years in advance amid the ongoing AI boom. The deals reflect intense competition among customers to avoid future shortages of essential components, including high-bandwidth memory (HBM).
The push to reserve future production comes as Korean chipmakers report record sales. On a recent conference call, Samsung said memory supply would likely remain tight through 2028, citing long factory-construction lead times and the complex processes required to manufacture next-generation chips.
Samsung’s semiconductor division posted record third-quarter profits, but the company’s share price remains below recent highs. Investor concerns about future supply and production capacity have weighed on the stock. The long-term deals could ease some market anxiety by providing more predictable revenue and demonstrating a strong order pipeline for Samsung’s most advanced products.