Samsung Electronics announced during its second-quarter earnings conference call on July 30 that it has completed contracts for server memory with the world's top five data center clients and is currently negotiating supply agreements with an additional five companies.
The company stated, "Contracts with big tech firms are structured as multi-year agreements based on a five-year term, with the volume covered by these contracts accounting for 60-70% of our current DRAM capacity."
Regarding advance payments under long-term contracts, Samsung explained, "We have included substantial advance payment clauses in all agreements with our clients," adding that it has already secured about one-quarter of the total contract value.
The multi-year supply agreements are based on a five-year term but will be adjusted annually through negotiations to reflect contract duration and supply volume in a 'rolling' manner.
* This article has been translated by AI.
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