Memory Suppliers Reportedly Betting on "Post-Settlement" Pricing and "Ultra-Short Contracts" Amid Skyrocketting Prices

The global memory market has been under significant pressure due to a sudden spike in prices amid a shortage. That’s not only hampering end-consumer but also the big tech giants that want to secure DRAM and NAND.

Samsung, SK hynix, and Micron are reportedly hardwiring skyrocketing DRAM costs into every new supply contract

According to a recent report by Korean news outlet ET News, Samsung, SK hynix, and Micron are now turning towards short-term supply contracts and “post-settlement” pricing methods, hinting at a major change from the traditional long-term agreements. Normally, memory contracts lock in prices for months or even a year, with only minor quarterly adjustments of around 10%.

But with current market volatility, suppliers are now agreeing to post-settlement contracts, where the final payment reflects the actual market price at the end of the supply period. The report mentions (machine-translated), “even if you decide to supply DRAM for 100 won for one year, if the DRAM market price rises by 100% at the end of the contract period, an additional 100 won will be paid. It is a kind of post-settlement.”

Apparently, this method is being used to target big North American tech companies. While suppliers risk losses if prices fall, the potential gains from further price surges outweigh the downside.

“It’s more important for major customers to secure memory than the contract terms. “Companies are willing to accept additional costs later to guarantee supply now,” a industrty insider told the news outlet.

That’s not all; the contract durations are reportedly also changing. Memory customers are seeking two-year agreements to support expanding AI infrastructure. Suppliers, however, are reluctant due to high volatility and limited supply, sometimes opting for quarterly or even monthly deals instead.

ETNews also reports that mass production of next-gen memory, like Micron’s HBM4, is expected in the second quarter of next year, but industry sources expect these supplier-favored contract trends to continue at least through the second half of 2026 as memory prices remain elevated.

via: Wccftech