Memory suppliers shift to shorter long-term agreements and NCNR terms amid supply constraints

Samsung Electronics and SK hynix are leading a shift in memory semiconductor long-term supply agreements (LTAs) as supply shortages persist. Contract periods are shrinking to allow for more frequent price adjustments, and suppliers are increasingly dictating terms. Non-cancellable, non-returnable (NCNR) contracts are expanding across PC and mobile DRAM segments. Despite weakening consumer demand, manufacturers are maintaining high procurement volumes to avoid future allocation restrictions, resulting in reduced spot market availability.