Choose Rich Live
Tech

Chinese tech giants pursue decade-long memory chip supply deals with Samsung and SK Hynix

Alibaba, Tencent, and ByteDance are reportedly negotiating memory supply contracts lasting up to ten years with South Korea's Samsung Electronics and SK Hynix to safeguard their artificial intelligence infrastructure through 2035.

A side-by-side view showing a Samsung flag waving outside an office building and the SK Hynix logo on a corporate facility exterior.
Image: @wallstengine

Chinese tech giants Alibaba, Tencent, and ByteDance are seeking long-term server memory supply agreements with South Korean semiconductor leaders Samsung Electronics and SK Hynix. According to reports cited by Wall St Engine and Maeil Business Newspaper, the companies are pushing for contracts lasting up to 10 years, potentially extending through 2035. The requested agreements significantly exceed the industry's typical three- to five-year terms as cloud providers rush to secure hardware for expanding artificial intelligence infrastructure.[2][3]

The sought-after contracts specifically target DDR5 and LPDDR5 memory rather than high-bandwidth memory, signaling that supply crunches are broadening beyond dedicated AI accelerators. As American tech firms lock down substantial shares of available output, long-term deals would give memory producers years of guaranteed demand visibility while providing Chinese hyperscalers with predictable component flow.[3][4]

Capacity constraints are already mounting across the semiconductor sector. According to estimates by KB Securities, Samsung has committed roughly 80% of its planned 2027 memory output to long-term commitments. Meanwhile, market intelligence firm TrendForce projects that DRAM and NAND will consume 68% of major cloud providers' capital expenditures in 2027, climbing 21 percentage points from 47% in 2026.[3]

The push to lock in overseas suppliers also highlights hurdles facing domestic alternatives. Industry outlet Wccftech noted that local Chinese memory manufacturers CXMT and YMTC continue to lag in key areas, leaving China's ambitions for complete DRAM self-sufficiency an elusive goal as its largest internet platforms turn to Samsung and SK Hynix.[1]

Key facts

  • Alibaba, Tencent, and ByteDance are reportedly pursuing long-term server memory contracts lasting up to 10 years through 2035 with Samsung Electronics and SK Hynix.
  • The proposed supply agreements target DDR5 and LPDDR5 memory rather than high-bandwidth memory (HBM).
  • Samsung has already committed approximately 80% of its projected 2027 memory output to long-term deals, according to KB Securities.
  • TrendForce estimates that DRAM and NAND will account for 68% of major cloud operators' capex in 2027, up from 47% in 2026.
  • Domestic Chinese chipmakers CXMT and YMTC still lag behind global peers in key technical areas.
  • Memory chip stocks have risen more than 100% this year amid surging AI infrastructure demand.

Sources 路 4 sources

  1. WC

    Wccftech@wccftechPost on X 路

    China's DRAM self-sufficiency to remain a distant dream as local giants seek 10-year LTAs with Samsung and SK hynix, while CXMT and YMTC lag in key areas. 馃敆 https://t.co/FGxLFopOSA https://t.co/R4EyO3sLlq

    Open source
  2. WS

    Wall St Engine@wallstenginePost on X 路

    Chinese 馃嚚馃嚦 tech giants Alibaba, Tencent and ByteDance are reportedly seeking long-term server memory supply deals with Samsung Electronics and SK Hynix. Some customers are even requesting 10-year contracts extending through 2035, well beyond the usual 3-5 years. The deals would cover DDR5 and LPDDR5 memory as Chinese cloud companies look to secure supplies for their expanding AI infrastructure.

    Open source
  3. CB

    Coin Bureau@coinbureauPost on X 路

    馃敟HOT: Memory chip stocks have surged over 100% this year. Now China's AI giants are seeking to LOCK IN chip supplies through 2035. China's Alibaba, Tencent and ByteDance are reportedly seeking 10-YEAR memory supply deals with Samsung and SK Hynix, potentially extending through 2035, as U.S. Big Tech locks in much of the available supply, per Maeil Business Newspaper. Samsung has already committed an estimated 80% of its planned 2027 memory output to long-term contracts, per KB Securities. TrendForce projects DRAM and NAND could account for 68% of major cloud providers' capital spending in 2027, up from 47% in 2026. DRAM helps AI systems process data faster, while NAND stores the massive datasets and AI models they need. Rising AI data center demand could boost PROFITS for Samsung, SK Hynix, and Micron while driving up Big Tech's infrastructure costs.

    Open source
  4. SB

    Shay Boloor@StockSavvyShayPost on X 路

    $BABA, Tencent and ByteDance are reportedly pushing $SKHY and Samsung for memory contracts lasting up to 10 years through 2035 instead of the usual 3 to 5 years. Really interesting see how they're trying to lock up DDR5 and LPDDR5 rather than HBM which suggests shortage is spreading beyond AI accelerators and could give memory makers years of demand visibility.

    Open source