News

According to industry sources and Reuters reporting, the global artificial intelligence (AI) boom is driving an unprecedented surge in demand for memory semiconductors, turning DRAM and NAND chips into one of the most strategically constrained resources in the technology supply chain. In response, several major technology companies are taking unusual steps to secure long-term production capacity by directly engaging leading memory manufacturers.

Reports indicate that multiple global tech firms are approaching South Korea’s SK hynix with proposals that include co-investing in new fabrication facilities and even funding the purchase of advanced equipment such as ASML’s extreme ultraviolet (EUV) lithography systems worth hundreds of millions of dollars. These initiatives aim to reserve future output amid a market where available capacity is described by insiders as effectively “near zero.”

One major proposal reportedly involves financing SK hynix’s large-scale DRAM-focused fab under construction in Yongin, South Korea. Another concept under discussion includes building dedicated or semi-exclusive memory production lines for specific customers. Industry sources note that current allocation flexibility is extremely limited due to already fully committed capacity.

Despite strong financial incentives from customers, SK hynix is said to be approaching such offers cautiously. Concerns include the risk of becoming overly dependent on individual buyers, which could pressure pricing and distort long-term supply strategies. The company is also wary of regulatory scrutiny and the geopolitical sensitivity of allocating scarce semiconductor capacity in a rapidly evolving AI competition landscape.

In parallel, memory suppliers and hyperscale customers are actively negotiating long-term supply agreements, but pricing structures remain a key challenge. Major manufacturers including Samsung Electronics and Micron Technology are exploring multi-year contracts that extend far beyond traditional annual agreements.

Micron has already introduced five-year Strategic Customer Agreements (SCA), offering multi-year supply commitments to improve visibility and stability for both suppliers and customers. Similarly, industry players such as SanDisk have reported multi-year contracts extending up to five years, signaling a structural shift in how memory supply is secured.

New contract frameworks under discussion include price-band mechanisms, which set upper and lower limits for annual pricing to reduce frequent renegotiations, as well as prepayment models requiring customers to pay 30% to 40% upfront to guarantee allocation.

Although the identities of all companies involved in investment discussions have not been disclosed, major hyperscale AI investors such as Alphabet (Google), Meta Platforms, and Microsoft have all announced significant increases in AI infrastructure spending. Microsoft alone expects capital expenditures to reach around $190 billion this year, with a substantial portion allocated to semiconductors and infrastructure components.

Driven by AI demand, SK hynix shares have surged sharply this year, reflecting investor expectations of a prolonged upcycle. The company’s market position has strengthened significantly, ranking among the top semiconductor firms in Asia alongside Samsung Electronics and TSMC.

Industry observers note that the shift from short-term purchasing cycles to long-term capacity locking agreements represents a structural transformation in the memory semiconductor market, driven primarily by the sustained expansion of AI computing infrastructure.