Samsung forecasts chip shortage until 2028 and signs long-term contracts
Kyiv • UNN
Samsung expects a global chip shortage until 2028. The company has signed long-term agreements with the five largest data center operators.
Samsung Electronics said it expects the global chip shortage to persist at least until 2028 and announced it has signed multi-year agreements with the largest data center operators. This was reported by Reuters, writes UNN.
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The company also reported a more than 250-fold increase in profit for its chip manufacturing division. Samsung noted that demand for chips remains high, and most major customers are already seeking to secure supplies for several years ahead.
The company is betting on long-term agreements
According to Samsung's executive vice president of the memory division, Jaejun Kim, the company has already signed supply agreements with the world's five largest data center operators and is close to signing contracts with five more major customers.
Samsung plans to have about two-thirds of its memory production secured by long-term contracts. Such agreements, typically concluded for at least five years, include advance payments and minimum prices, allowing the manufacturer to reduce risks associated with large-scale investments.
At the same time, Reuters notes that despite Samsung's strong financial results, investors remain cautious due to high spending by technology companies on artificial intelligence infrastructure development and increased competition from China. These factors have been putting pressure on chipmakers' stocks in recent months.