Memory and storage component prices have been rising sharply since the middle of last year and so far, show no sign of slowing down, allowing not only consumers to build PCs and buy new smart devices at affordable prices, but also causing problems for many other industry sectors.
Samsung Electronics co-CEO Jun Young-hyun said that demand for memory and storage chip components is expected to increase further this year, especially as the demand for these components to power AI data centers is still very high. Samsung Electronics expects this high demand to continue until 2030.
In fact, Samsung itself has also begun developing new HBM4 chips specifically for use with NVIDIA's upcoming Vera Rubin supercomputer.
To solve this memory component capacity problem, Young-hyun said that Samsung Electronics will introduce new contract terms for a number of its clients with longer terms. Instead of contracts that need to be renewed every quarter or every year, these new contracts will come with a term of three to five years to ensure that they have a sufficient supply of memory components.
This means that even if the price tag of memory chip components increases, the price of the components will be maintained at the agreed price. For Samsung, it also helps the company maintain profits if the AI sector “bubble” bursts and demand for such processing capacity drops sharply.
