Samsung flags memory chip shortage likely to persist through 2028
AI Market Summary
Samsung's expectation that memory chip shortages will intensify through 2028, alongside five-year supply agreements covering 60%–70% of capacity with prepayments and floor pricing, increases visibility and downside protection for its semiconductor cash flows. The semiconductor unit's strong profit contrasts with a record mobile loss, reinforcing the market's focus on the higher-quality chip earnings stream. Near term, this can support Samsung equity and sector sentiment.
Impact level
● Medium
Affected assets
NCSKSAMSUNG2USD/USDT-0.05%
AI Insight · NCSKSAMSUNG2USD/USDTAI Insight
▲ Bullish
Trade now
⚠️ AI-generated insights are based on news content and are provided for informational purposes only. They do not constitute investment advice or represent the views of BingX. Investing involves risk. Please trade responsibly.
Samsung Electronics said the memory chip supply crunch is set to intensify and could last through 2028. The company has signed supply agreements of at least five years with major customers, covering about 60%–70% of total capacity, and including advance payments and floor-price provisions.
In the second quarter of 2023, Samsung's semiconductor division posted operating profit of 89.2 trillion won (about $61.7 billion). Its mobile business, by contrast, recorded a single-quarter loss of 700 billion won, the largest on record.
The long-term contracts are expected to improve earnings visibility for Samsung's semiconductor operations, a development viewed as a meaningful positive catalyst for SAMSUNG shares.
