Samsung Secures Long-Term Memory Contracts, Sells Out HBM
Samsung Electronics has succeeded in securing stable future revenue sources by signing long-term agreements (LTAs) for memory semiconductors with 10 major global customers. The company, which is also in talks with 10 additional firms, aims to fill 60% to 70% of its total production capacity with lon
Samsung Electronics has secured long-term memory contracts with 10 major global customers, bolstering future revenue streams. The company aims to utilize 60% to 70% of its production capacity with these commitments by 2030. Executive Vice President Kim Jae-jun revealed this during the third-quarter earnings call on October 29.
Negotiations are ongoing with additional firms, aiming to fill most of Samsung's production capacity with long-term contracts. Long-term supply contracts are crucial for improving the predictability of future demand. Traditionally, these contracts were with AI-related companies, but the trend has now expanded into mobile, automotive electronics, and network sectors.
Samsung's dominance in the high bandwidth memory (HBM) market is strengthening, with negotiations for HBM volumes at target price levels, effectively "sold out." The sixth-generation HBM4 saw sales surge more than threefold from the previous quarter, accounting for 60% of total HBM sales. The foundry business division is also experiencing order momentum centered around advanced processes.
Kang Seok-chae, Executive Vice President of Samsung's Foundry Business Division, anticipates more than double the number of 2-nanometer order projects this year compared to last. Revenue from high-performance computing (HPC) is expected to constitute over 50% of total revenue next year. To meet global customer demand, Samsung is exploring measures such as constructing additional plants.
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