Samsung Locks 70% of Memory Capacity to 2031, but Nvidia Still Faces Shortages
Samsung Electronics has reportedly allocated 70% of its memory production capacity through 2031 to long-term agreements (LTAs) with major tech companies like Nvidia, Microsoft, and Google.
AsiaAI Publisher
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September 1, 2026 ·
3 min read · Source: 科技新報 TechNews
Samsung reportedly put 70% of its memory capacity into long-term contracts through 2031. This move changes the competition for AI infrastructure. Stable supply is now the main advantage, rather than just having the best technology. Big firms like Nvidia, Microsoft, and Google want to protect their AI plans from supply shortages. They are locking in deals even though the spot market costs four to five times more.
The local Taiwanese press, specifically *TechNews*, focuses on what this means for major players like Nvidia. Nvidia still faces shortages despite these agreements. This view is more direct than the positive Western take on AI innovation. It focuses on the hard reality of hardware limits. For East Asian industrial firms, building and shipping physical products matters most. Memory market swings limit every company in the supply chain.
These long-term agreements look like the traditional Japanese *keiretsu* supply systems. In those systems, stable and predictable supply lines matter more than spot-market pricing. These new deals are not formal partnerships, but they have a similar effect. Major buyers are showing that steady supply is a top goal. This gives memory makers a strong reason to invest fast. They know their future sales are secure.
These deals still do not guarantee a full supply. Nvidia still faces a shortfall today. The issue is not just about price, because there is a real physical limit on chip making and packaging. It is a mistake to think a contract solves the supply problem. AI model sizes and infrastructure needs are growing very fast.
We must watch Micron’s HBM capacity growth in Hiroshima. This expansion will show if Japan can become a strong alternative source of chips. We must also watch SK Hynix, the current HBM market leader. We need to see if it can grow its long-term deals without losing spot market sales. Finally, we should track the actual output rates from Samsung’s HBM lines. These numbers tell us more than any financial news.
