Samsung Electronics: "Long-term supply contracts are being negotiated at up to 70% of current memory capacity" [Conference Call]

[Financial News] Samsung Electronics said during its second-quarter earnings conference call on the 30th that it is planning long-term supply agreements (LTAs) at 60% to 70% of total memory production capacity.
Samsung Electronics said that many customers are requesting multi-year supply contracts as concerns grow that the memory shortage will last for an extended period. It added that demand for additional supply from customers continues for both DRAM and NAND flash memory, and that nearly all customers are asking for multi-year contracts as market prices keep rising. The company also said it is having difficulty meeting all customer requests within its available capacity.
Samsung Electronics said it has already completed contracts with five major global data center customers and is in the final stages of negotiations with five large customers linked to AI demand. It added that the number of multi-year supply contract customers will increase over time. The company also emphasized that once the contracts under negotiation are finalized, the volume of multi-year agreements should be enough to reach 60% to 70% of capacity based on its current medium- to long-term production plan.

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