Alibaba, Tencent, and ByteDance are negotiating DDR5 and LPDDR5 memory supply agreements with Samsung Electronics and SK Hynix that could run through 2035, compared with the usual three to five years. The contracts are intended to support the expansion of their AI data centers, whose combined planned capacity in China exceeds 24 GW. Competition is intense, with an estimated 70% to 80% of Samsung and SK Hynix’s 2027 production already committed while AWS, Microsoft, Google Cloud, and Meta have secured much of the available long-term capacity. ByteDance is advancing roughly 5.3 GW of capacity, Alibaba 3.9 GW, and Tencent 2.4 GW, following combined orders for more than $35 billion in Nvidia GPUs. For the memory manufacturers, the agreements would provide exceptional revenue visibility, while for the Chinese platforms they could reduce delays caused by component shortages.
Source: Read the original article
