Report: Alibaba, Tencent, and ByteDance negotiate 2035-year DRAM long-term supply agreements
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AT A GLANCE
The report said that Alibaba, Tencent, and ByteDance are negotiating long-term supply agreements for server memory with Samsung Electronics and SK SK hynix.
Article
Alibaba, Tencent, and ByteDance seek SK long-term supply agreements from DRAM Samsung Electronics and SK hynix, with some requesting terms through 2035 PANews October 27 reported that, according to the Korean media outlet Maeil Business Newspaper, major Chinese cloud service providers including Alibaba, Tencent, and ByteDance (CSP) are negotiating long-term supply agreements for server memory (SK) with Samsung Electronics and SK hynix. Such agreements typically last LTA for 3 to 5 years, but some customers have proposed signing through 2035 for a term of 10 years. The procurement demand covers server-grade DDR and low-power LPDDR。LPDDR commonly used in smartphones, which can improve the energy efficiency of AI servers. The report said that amid tight memory supply, these companies are prioritizing securing supply volumes even at relatively high prices. Previously, U.S. technology giants had secured memory supply through LTA.
According to Korea's Maeil Business Newspaper, Alibaba, Tencent, and ByteDance are negotiating long-term supply agreements for server memory with Samsung Electronics and SK SK hynix.
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The relevant procurement demand covers server-grade DDR and low-power LPDDR。
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Such agreements typically last 3 for 5 to 2035 years, but some customers have proposed signing through 10 for a term of years.
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The report said that amid tight memory supply, these companies prioritize securing supply volumes even when faced with relatively high prices.
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The report stated that U.S. technology giants had previously secured memory supply through long-term supply agreements.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
These major Chinese cloud service providers hope to arrange long-term supplies of server memory in advance. The agreements in the report are still under negotiation, and the terms proposed by some customers are longer than the usual 3 to 5 years.
Why it matters to readers
Long-term agreements can help the relevant companies prioritize securing memory supply volumes; the report also said that memory supply is currently tight and buyers are willing to prioritize supply security even at relatively high prices.
Beginners should distinguish between “under negotiation” and “already signed”: the report currently only states that the parties are in talks, and it cannot yet be concluded that long-term orders have been finalized.
Risks and unknowns
The information comes from PANews' retelling of a report by Korea's Maeil Business Newspaper.
The original report did not provide formal confirmation from the relevant companies.
It remains unclear whether the agreements will ultimately be signed.
The terms applicable to specific customers, procurement quantities, and prices were not disclosed.
The specific companies referred to as “some customers” were not identified.
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Cloud service providers (CSP）
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