Samsung Forecasts Chip Shortages Until 2028, Announces Long-Term Supply Agreements
Samsung Electronics reported a record operating profit margin for its chip division and announced multi-year supply agreements with major data center operators. The company expects global memory shortages to persist until at least 2028 due to strong demand from AI infrastructure. Despite the positive outlook, investor concerns remain about sustainability of high margins amid rising costs in technology sectors. Samsung's semiconductor unit saw a more than 250-fold increase in operating profit year-over-year and aims to secure contracts covering two-thirds of its memory output through long-term deals with data center firms. These agreements typically include upfront payments and floor pricing, aiming to hedge against capital investment risks.
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Topics: chip shortage data centers memory chips Samsung Electronics