❯ Alibaba, Tencent and ByteDance discuss long-term memory supply, with some customers seeking coverage through 2035

Procurement horizons extendSouth Korea’s Maeil Business Newspaper reported on October 27, citing industry sources, that Alibaba, Tencent and ByteDance are discussing long-term server DRAM supply with Samsung Electronics and SK Hynix. Some customers seek arrangements through 2035, approximately ten years, beyond the three-to-five-year terms described as currently common. These are requests under discussion, rather than confirmed ten-year contracts for every named buyer.

Demand covers more than HBMThe discussions include server DDR and low-power LPDDR. DDR provides main memory for server processors; LPDDR emphasizes energy efficiency. Expanding AI services require host-system memory and efficient data access alongside accelerators and their high-bandwidth memory, broadening the categories procurement teams must secure.

Capacity is reserved in advanceThe report says major US technology companies have already secured supply through long-term agreements, while the Chinese cloud providers seek volumes additional to existing contracts. Longer commitments improve planning visibility for buyers and support manufacturers’ investment decisions. The final balance of duration, volume and pricing determines how much security a contract provides.

▮ SIGNALAI infrastructure competition increasingly includes multiyear supply commitments, making dependable memory capacity a prerequisite for cloud expansion.