Memory Manufacturers Secure Long-Term Orders with Supply Commitments Extending to 2030
1 week ago / Read about 0 minute
Author:小编   

According to Taiwan's Commercial Times, supply chain insiders reveal that the long-term supply agreements (LTAs) currently being forged by major memory manufacturers, Winbond and Nanya Technology, predominantly adopt a "quantity-locked, price-flexible" approach. This strategy marks a shift from the traditional one-year contract durations, extending them to at least two years, with some key clients even securing long-term partnerships that stretch close to 2030. Historically, long-term contracts between memory manufacturers and their major clients adhered to a "price-locked, quantity-locked" framework. The essence of the current "quantity-locked, price-flexible" model is to prioritize production capacity allocation and ensure stable shipments, while allowing prices to adjust in line with market fluctuations, thereby maintaining pricing agility. Industry experts note that this model guarantees suppliers a baseline profit margin and stable utilization of production capacity. Nevertheless, without fixed pricing, the ceiling on gross profit margins is also constrained, leading to a scenario where "there are no losses, but significant profits are also elusive."

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