[Conference Call] Samsung Electronics: "Memory Supply Shortage to Persist Through 2028... Surge in Multi-Year Supply Contract Requests"

On July 30, during its earnings conference call for the second quarter of this year, Samsung Electronics stated, "Despite the industry's expansion of capital expenditures (CAPEX), considering the long lead time of more than three and a half years from the construction of new fabs to wafer production, it inevitably takes a considerable amount of time to expand supply through capacity increases. Therefore, it is unlikely that we will see a significant increase in supply before 2028."

The company added, "Unmet demand caused by this year's supply shortage is being carried over into next year, leading to additional supply pressure. In particular, we expect the supply shortage to deepen in 2027 compared to this year, and this shortage is projected to continue into 2028 as well."

Samsung Electronics also noted, "In response, artificial intelligence (AI) frontier model companies are sharing their medium- to long-term demand outlooks to secure sufficient memory supply. Recently, these companies have directly expressed their intention to purchase from us and have begun requesting multi-year supply contracts to secure large-scale additional supplies." The company further stated, "After securing cleanroom infrastructure through preemptive investment, we will further solidify our supply management approach of flexibly installing equipment in line with demand fluctuations."

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