Samsung Says Memory Shortages Will Last Through 2028 Amid Long-Term Deals
Samsung said multi-year contracts will cover about two-thirds of memory output as AI demand keeps tightening supply, with shortages expected to deepen through 2028.
- On Thursday, Samsung Electronics reported an operating profit of 89.2 trillion won , a more than 250-fold increase from a year prior. The company warned that global memory chip shortages will likely worsen and extend through 2028.
- To reduce exposure to boom-and-bust cycles, Samsung has signed multi-year supply agreements with the world's five largest data center firms, featuring floor pricing and upfront payments lasting at least five years.
- While the semiconductor unit thrived, Samsung's mobile division posted a 700 billion won loss due to surging chip costs. The company expects its foundry business to turn around "in the near future."
- Chief Financial Officer Park Soon-cheol said Samsung is "in active discussion" regarding its shareholder return program for this year. The company also confirmed it has no plans for a U.S. listing, citing stable cash generation.
- Samsung plans to raise capital spending by around 50% this year to meet surging AI demand. The company's Taylor, Texas plant will begin operations this year, with a second facility targeting mass production in 2030.
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South Korean sees how supply contracts for AI data centers will mark the end of inflation in RAM and SSD towards that horizon.
Samsung forecasts chip shortages until 2028 and signs long-term contractsSamsung expects a global chip shortage by 2028. The company has signed long-term agreements with the five largest data center operators.
Samsung Says The AI Chip Boom Isn't Slowing. It Expects Supply To Stay Tight Until 2028
Samsung's latest results suggest the global race to build AI infrastructure is creating a longer-lasting memory shortage than many expected, with major cloud providers locking in multi-year supply agreements.
Samsung warns memory crunch will last through 2028 as profit rises 19-fold
Samsung Electronics is warning that the current memory supply crunch will deepen next year and persist through 2028, a shortage that keeps padding its own record profits at the expense of enterprise customers and consumers. The Korean conglomerate said agentic AI has added to demand already generated by model training, driving an "unprecedented rise" in requirements for AI servers and other computing infrastructure. Memory makers continue to pri…
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