Samsung Locks Up Majority of High-Bandwidth Memory Capacity Through 2031 Amid Persistent Shortage
Samsung Electronics has secured long-term agreements for approximately 70% of its high-bandwidth memory (HBM) production capacity through 2031, according to reports. Major customers like Microsoft, Nvidia, and Google are locking in supply years ahead at prices significantly below the current spot market rate—$300–400 per module versus $2,100 on open markets—to ensure access amid ongoing shortages driven by AI demand. The shortage is expected to persist well into 2030 or beyond. SK hynix has committed over $38 billion in HBM expansion through 2031 and warned of continued supply constraints. Despite increased capital spending, new production capacity will not immediately alleviate the shortage due to long qualification cycles for advanced memory technologies. The situation reflects a broader shift where AI is transforming memory from a cyclical component into critical infrastructure. As demand grows, companies are securing future supplies early, leaving limited availability on open markets and reinforcing supply-side bottlenecks.
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Topics: AI demand HBM shortage Samsung Electronics semiconductors