Samsung Electronics 2026 Q2 Earnings Conference Call Q&A

English summary

Q: Could you provide an update on the LTA? A. Regarding multi-year memory supply agreements, there has been a surge in market demand to secure mid-to-long-term AI service infrastructure, and there is growing market expectation that memory supply shortages will persist for a longer time. Therefore, many customers are applying for long-term supply agreements (LTAs). These customers are requesting terms consistent with our goal of hedging medium-to-long-term business risks. So, we will prioritize negotiations with customers who have stable future demand and who can enter into binding agreements with mutual performance commitments. However, customer demand for both DRAM and NAND flash supply is increasing, and market prices continue to rise. Almost all customers are requesting long-term supply agreements (LTAs), so our existing capacity is insufficient to meet all supply needs. To maintain sufficient supply flexibility to meet the needs of customers without multi-year agreements, we plan to allocate approximately 60% to 70% of total capacity to long-term agreements (LTAs). …