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Apple views Kioxia as strategic long-term partner for memory supply

Wednesday, January 21, 2026 at 06:45 AM

Apple considers Kioxia as a long-term manufacturing partner for flash memory under favorable cost terms and flexible cancellation agreements.

Context

The memory industry is shifting toward flexible Long-Term Agreements (LTAs) as a structural server DRAM shortage of 15% is projected to persist through 2026. Companies like Winbond, Nanya Technology, and Micron are adopting multi-year deals—some extending to 2030—that guarantee supply volumes while allowing prices to fluctuate. This strategy secures production stability for major buyers including Apple, Amazon, Google, and Dell Technologies as AI-driven demand for high-bandwidth memory continues to crowd out standard DRAM capacity. A strategic rift has emerged as Samsung and SK Hynix resist these LTAs, favoring quarterly contracts to capitalize on immediate price spikes of 60% to 70%. Conversely, Micron and Kioxia are prioritizing multi-year partnerships to stabilize market share despite the potential for limited upside margins. These divergent approaches highlight a market where the priority for buyers has shifted from price negotiation to guaranteed volume access until supply rebalances, likely around 2027.

Related Companies

Dell Technologies

DELL

Nanya Technology

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SK Hynix

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Micron

Winbond

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Apple

AAPL

Samsung

Google

GOOGL

Amazon

AMZN