Physix FrontierPhysix Frontier · News Briefing Card (IT Home · Oct 12, 2026)
Samsung locks nearly 80% of next-year memory capacity via LTAs
KEY FACTS
- Samsung Electronics has locked up nearly 80% of its memory chip capacity for next year through long-term supply agreements.
- Tech giants including Nvidia, Google and Microsoft have already placed orders with Samsung.
- The locked-in supply terms are generally five years or longer.
- Samsung says core customers are pressing hard for long-term agreements and it cannot fully meet the demand.
- SK Hynix and Micron have also finalized large long-term supply deals with customers.
KEY DATA
Nearly 80%Share of Samsung's next-year capacity locked in
Five years or moreLong-term agreement supply term
PHYSIX OBSERVATION
Memory chips shifting from spot buying to long-term contract lock-in shows that AI giants' anxiety over compute supply has propagated upstream. For Samsung and its peers, this is good news: it locks in revenue and lowers the risk of capacity expansion. But with capacity carved up in advance, small and mid-sized buyers will find it harder and more expensive to secure supply, further concentrating supply-chain leverage in the hands of the top players.
Source: IT Home report