Samsung and SK Hynix Shift to Long-Term Supply Deals to Stabilize AI Memory Market
The expansion of AI servers is boosting demand for high-bandwidth memory and DRAM, but the memory industry has long faced supply-demand imbalances and sharp price swings. Samsung Electronics and SK Hynix are therefore targeting customers including AMD, Microsoft and Google, seeking long-term contracts to secure demand for production capacity and protect profits while reducing exposure to industry cycles.
Samsung Electronics and SK Hynix have recently begun a broad push for three- to five-year supply agreements, replacing their previous shorter-term contract model. By setting supply volumes and prices in advance, the companies aim to stabilize the AI memory supply chain. Reports did not disclose signing dates, actual contract values or locked-in prices. For now, the focus is on extending partnership terms and improving demand visibility.
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1 original reportsThe Backstory
The history behind this eventInside SK hynix’s Secret HBM Production Line and Its Semiconductor Dominance in the AI Boom
High-bandwidth memory (HBM) delivers large volumes of data to AI accelerators with high bandwidth and low power consumption, making it a critical component in the race for generative AI computing power. After a downturn in the memory market, SK hynix rebounded through technology investment and its supply partnership with Nvidia, becoming a key company in the global AI semiconductor supply chain.
South Korean broadcaster KBS was granted access to SK hynix’s M16 wafer fabrication plant for the first time. Its program “The World Seen for the First Time” showed the company’s secret HBM production line operating around the clock, along with employees at work. The report did not specify an air date, investment amount or production capacity, but footage from the facility showed the company working at full speed to meet demand for AI memory.
Samsung and SK Hynix Vie Over Next-Generation AI Memory Architectures
Rapid growth in AI computing demand has made high-bandwidth, low-power DRAM a key battleground in the semiconductor industry. Samsung Electronics and SK Hynix are exploring new transistor and memory-cell architectures as they compete to shape next-generation technology standards. The outcome will affect the performance, power consumption and mass-production costs of future AI chips.
The latest technology road maps show Samsung Electronics plans to introduce the GAAFET process into next-generation DRAM to improve current control and computing performance. SK Hynix, meanwhile, is testing a vertically stacked 4F² architecture to reduce cell area and increase density. Related reports have not disclosed mass-production dates, investment amounts or specific performance data.
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