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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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According to Samsung's management, the crisis will definitely last until 2028.
·Budapest, Hungary
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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.
·Los Angeles, United States
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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.
·Kyiv, Ukraine
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Total News Sources44
Leaning Left4Leaning Right9Center12Last UpdatedBias Distribution48% Center
Bias Distribution
- 48% of the sources are Center
48% Center
L 16%
C 48%
R 36%
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