Nearly 80% of Samsung Electronics' memory chip production capacity for the coming year has already been reserved through long-term supply contracts, leaving the remaining 20% to be fiercely competed for by tech behemoths that have yet to secure agreements. Alongside Samsung, memory chip producers like SK Hynix, Micron, and SanDisk have also been actively pushing for the long-term agreement model in recent times. Initially adopted to tackle the memory chip shortage triggered by the AI surge, this model has now broadened its scope to encompass the entire AI infrastructure supply chain, covering MLCCs, FC-BGA substrates, power equipment, and cooling systems.

At present, the bargaining power in the market is tilting towards suppliers, with conditions such as 20%-25% upfront payments and mandatory purchase volumes becoming standard practice. Long-term agreements not only enable tech giants to guarantee their supply but also aid suppliers in mitigating the risks associated with capital expenditure for capacity expansion. Nevertheless, analysts warn that if the AI craze subsides and the semiconductor market experiences a downturn, long-term agreements tied to AI demand could pose a risk for suppliers.