Major Chinese cloud service providers Alibaba, Tencent and ByteDance are negotiating long-term supply agreements (LTAs) for server memory with Samsung Electronics and SK Hynix. While standard LTAs typically run 3 to 5 years, some customers have proposed contracts extending through 2035, representing a 10-year term.
The procurement demand covers server DDR and low-power LPDDR, with the latter increasingly used to improve energy efficiency in AI servers. Facing tight memory supply, these companies are prioritizing securing supply volumes even at higher prices. This move follows similar long-term locking strategies previously adopted by US tech giants.
Alibaba, Tencent and ByteDance Seek Long-Term DRAM Supply Deals From Samsung and SK Hynix
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