Samsung Electronics and SK hynix are transitioning to multi-year supply agreements with Microsoft and Google. These contracts cover critical AI components, including high-bandwidth memory (HBM) and conventional DRAM.
The proposed deals span three to five years, replacing traditional quarterly or annual cycles. Executives from both firms confirmed the shift toward these long-term commitments to meet AI infrastructure demand.
New contracts will include significant upfront payments to fund massive production capacity expansion. This structural change aims to reduce price volatility and improve long-range planning for the memory market.