Crazy Storage Chip, Unprecedented in History
Samsung forecasts an unprecedented memory chip super cycle driven by AI demand. Micron reports record revenue amid HBM boom.
Samsung yesterday (18th) held its annual shareholders’ meeting. Co-CEO and head of the memory chip business, Jun Young-hyun, stated that the growth in AI data center investments is driving the memory industry into an “unprecedented super cycle.”
Samsung indicated that the practical value of AI agents is rapidly increasing user numbers, boosting customer demand. This has led to explosive growth not only in high-bandwidth memory (HBM) but also in orders for solid-state drives (SSDs) and other server chips. The company warned that rising memory prices could impact shipments of PCs and smartphones.
Jun Young-hyun believes that as AI demand continues to grow and causes persistent memory supply shortages, the business environment will remain favorable for Samsung.
Samsung is optimistic that the AI boom will sustain strong memory demand this year. It is negotiating with major customers to shift memory supply contracts from the current “quarterly” or “annual” agreements to “multi-year contracts” spanning three to five years. This aims to enhance predictability and stability in the chip business, ensure a stable supply, and alleviate concerns over shortages of critical components.
Jun Young-hyun also reminded attendees that risks remain, highlighting uncertainties in the global macroeconomic environment, such as tariff issues, which could impose cost burdens on overall product businesses (TVs, smartphones, and home appliances).
