Samsung Adopts Crisis Measures Amid Memory Shortage

Samsung considers multi-year contracts for reminiscence chips to stabilize revenues.

Samsung Electronics is considering a shift to multi-year contracts for reminiscence chip provide. This transfer might stabilize revenues and alleviate issues about element shortages, reviews Bloomberg.

The firm is discussing extending the length of agreements from the present quarterly or annual phrases to a few to 5 years.

Samsung’s CEO, Jun Young-hyun, acknowledged that demand for AI reminiscence chips will proceed to surge in 2026, prompting a strategic shift.

Samsung Electronics, Micron Technology, and SK Hynix dominate the worldwide information storage module market. In current years, all three corporations have reoriented manufacturing in direction of specialised chips designed for Nvidia AI accelerators. This has led to a scarcity of extra conventional semiconductor varieties.

The chip scarcity situation is driving up costs throughout a variety of merchandise—from laptops and smartphones to automobiles and information facilities. Many consultants anticipate a worsening state of affairs.

SK Hynix Chairman Choi Tae-won acknowledged that the worldwide DRAM disaster will persist till 2030, as builders wrestle to scale manufacturing in keeping with rising demand.

Crisis Mode

Due to the scarcity and the Middle East battle, Samsung has positioned its cell division in “crisis mode,” reviews South Korean publication Fnnew. The firm expects its revenue to say no by 60% in 2026.

Previously, the tv and residential equipment divisions have been additionally put into “crisis mode.”

The motive lies within the declining margins related to the surge in reminiscence chip costs, which have risen by 850% over the yr, in response to the publication. Another situation is the disruption of logistics chains as a result of Middle East battle.

The firm’s administration has ordered a 30% discount in bills throughout all gadget development-related areas. Options for “staff restructuring” and launching voluntary retirement applications are being mentioned.

In February, Samsung unveiled its new S26 smartphone lineup. Artificial intelligence was a central characteristic of the devices.

Found a mistake? Select it and press CTRL+ENTER