Samsung Electronics, the South Korean electronics maker and chipmaker, said memory chip shortages could last through 2028.

Its shares rose as much as 8% in Seoul after the company outlined multi-year supply deals with big tech customers.

Executive vice president Jaejune Kim said shortages in 2027 could be worse than this year and continue into 2028.

He said Samsung has signed long-term supply agreements with the world’s top five data center operators and is nearing deals with five other large companies.

The contracts would last at least five years and cover 60% to 70% of Samsung’s longer-term memory chip capacity, with upfront payments and floor pricing, he said.

Samsung said its preliminary second-quarter guidance was for company-wide operating profit of 89.4 trillion won (US$61.7 billion) on revenue of 171 trillion won (US$118 billion).

The deal structure reflects a broader industry shift toward three- to five-year memory supply agreements with advance payments and price protections.

SK hynix, a South Korean memory chipmaker, was also negotiating multi-year deals with Google and Microsoft, highlighting tight AI-driven memory supply across major chipmakers.

🔗 Source: Reuters

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