Samsung Applied Crisis Measures Amid Memory Shortage - ForkLog: cryptocurrencies, AI, singularity, future

Froklog · 2026-03-18T13:44:26+00:00

Samsung is considering long-term contracts for memory chip supplies to mitigate shortages and stabilize revenues. The CEO anticipates growing demand for AI memory chips by 2026, prompting strategic shifts. Rising chip prices and regional conflicts are pushing Samsung's mobile division into a crisis mode, with expected profit declines and cost-cutting measures across various sectors.

Froklog

2026-03-18 13:44:26

Abstract generation in progress

# Samsung Implements Crisis Measures Amid Memory Shortage

Samsung Electronics is considering moving to multi-year chip supply contracts. This step could stabilize supply and reduce concerns about component shortages, reports Bloomberg.

The company is discussing extending agreement durations from current quarterly or annual terms to three to five years.

Samsung CEO JY Lee stated that demand for AI memory chips will continue to grow sharply in 2026. This has prompted a change in strategy.

Samsung Electronics, Micron Technology, and SK Hynix dominate the global data storage module market. In recent years, all three companies have shifted production toward specialized chips designed for Nvidia AI accelerators. This has led to shortages of more traditional semiconductor types.

The chip shortage is causing price increases across a wide range of products—from laptops and smartphones to cars and data centers. Many experts expect the situation to worsen.

SK Hynix Chairman Choi Tae-won said that the global DRAM crisis will last until 2030. Developers are unable to keep up with rising demand.

Crisis Mode

Due to shortages and conflicts in the Middle East, Samsung has put its mobile division into “crisis mode,” reports South Korean publication Fnnews. The company expects its profit in 2026 to decrease by 60%.

Previously, the TV and home appliance divisions were also moved into crisis mode.

The reason is declining margins caused by a surge in memory chip prices. They have increased by 850% over the year, according to the publication. Another issue is disrupted logistics chains due to the Middle East conflict.

Management has ordered a 30% reduction in all development-related expenses. Restructuring options and voluntary retirement programs are also being considered.

Recall that in February, Samsung introduced a new S26 smartphone lineup. The central feature of these devices is artificial intelligence.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.