Samsung Adopts Crisis Measures Amid Memory Shortage

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

Samsung Electronics is contemplating a shift to multi-year contracts for memory chip supply. This move could stabilize revenues and alleviate concerns about component shortages, reports Bloomberg.

The company is discussing extending the duration of agreements from the current quarterly or annual terms to three to five years.

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

Samsung Electronics, Micron Technology, and SK Hynix dominate the global data storage module market. In recent years, all three companies have reoriented production towards specialized chips designed for Nvidia AI accelerators. This has led to a shortage of more traditional semiconductor types.

The chip shortage issue is driving up prices across a wide range of products—from laptops and smartphones to cars and data centers. Many experts anticipate a worsening situation.

SK Hynix Chairman Choi Tae-won stated that the global DRAM crisis will persist until 2030, as developers struggle to scale production in line with rising demand.

Crisis Mode

Due to the shortage and the Middle East conflict, Samsung has placed its mobile division in “crisis mode,” reports South Korean publication Fnnew. The company expects its profit to decline by 60% in 2026.

Previously, the television and home appliance divisions were also put into “crisis mode.”

The reason lies in the declining margins associated with the surge in memory chip prices, which have risen by 850% over the year, according to the publication. Another issue is the disruption of logistics chains due to the Middle East conflict.

The company’s management has ordered a 30% reduction in expenses across all device development-related areas. Options for “staff restructuring” and launching voluntary retirement programs are being discussed.

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