Samsung Expects Global Chip Shortage to Last Until 2028, Signs Long-Term Supply Deals

Samsung Electronics has forecast that the global semiconductor shortage will continue until at least 2028, driven by strong demand from AI and data centre operators. To secure future business, the company has signed multi-year supply agreements with five major global data centre firms and is close to finalizing deals with five more. The tech giant said it aims to place around two-thirds of its memory chip production under long-term contracts, many of which include advance payments and minimum pricing to reduce market uncertainty. Samsung's semiconductor division posted a record operating profit of 89.2 trillion won ($61.7 billion) in the second quarter, more than 250 times higher than a year ago, while total revenue surged 130% to 171.5 trillion won. However, its mobile business reported a loss as rising chip prices increased production costs. The company also expects strong growth in AI-related memory chips, with HBM4 revenue projected to more than triple in the third quarter, reinforcing its confidence in long-term demand despite investor concerns over AI infrastructure spending.

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