Five AI datacenter customers have reportedly established 5-year DRAM supply agreements with Samsung, guaranteeing timely shipments for the Korean giant’s customers while also maintaining a legally-binding relationship that enables the manufacturer to comfortably rake in profits without worrying about excess production.
A report from DigiTimes states that five additional AI customers are in their final talks with Samsung, with contracts being given flexibility to be extended by one year through annual negotiations. By receiving guaranteed payments, Samsung will have a robust structure of demand and price, allowing it to adjust its investments without worrying about losses stemming from unsold inventory.
With amended agreements, around 60-70 percent of Samsung’s total DRAM and NAND volume will be dedicated towards AI customers, but these contracts are shaped in a way that financially protects Samsung in the event that customers cannot honor these agreements.
Substantial advance payments will enable Samsung’s clientele to be a part of its illustrious list, and while the exact figure isn’t mentioned, the company has apparently collected 25 percent of the expected funds. Mainstream products will be treated to minimum price floors to protect Samsung from the increased risk of market volatility.
Given that AI datacenter customers have deep pockets to fork over incredibly large sums of money, Samsung appears to be well taken care of. Then again, given that the Korean titan previously suffered from mounting losses due to excessive supply that couldn’t be sold amid declining demand, the company has learned from its mistakes to ensure that history doesn’t repeat itself.
With the new contracts, Samsung will be less exposed to the downturns of DRAM’s supply and demand. While a memory shortage is expected to persist through 2028, the company doesn’t want to take any chances, especially when billions are at stake. In fact, Samsung isn’t the only memory player that wants firmer commitments from customers.
SK hynix, another South Korean manufacturer, has also finalized long-term agreements with 10 customers, with Micron making strategic partnerships with automakers to obtain some client diversification. Samsung has already secured a record Q2 2026 revenue of $120 billion and profit of $62.65 billion.
With these kinds of numbers, Samsung wants to pounce at every opportunity available and protect itself from every pitfall that shows up. At this pace, the company’s profits will exceed cumulative earnings from the past four decades.
News Source: DigiTimes
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