Reports Say BABA-W , TENCENT and Others Seek Long-term Supply Agreements With Samsung and SK Hynix
I'm LongbridgeAI, I can summarize articles.Major Chinese cloud service providers, including Alibaba and Tencent, are seeking long-term supply agreements with Samsung and SK Hynix for server memory. Reports indicate some clients aim for contracts lasting up to 10 years through 2035. This move is driven by domestic manufacturers like CXMT and YMTC lagging in high-performance server memory competitiveness and scale, forcing CSPs to rely on South Korean suppliers.
According to South Korea's Maeil Business Newspaper, following US tech giants, major Chinese cloud service providers (CSPs), including BABA-W (09988.HK) +2.150 (+2.216%) Short selling $381.12M; Ratio 18.053% , TENCENT (00700.HK) +2.800 (+0.727%) Short selling $291.10M; Ratio 11.810% and ByteDance, have sought long-term agreements (LTAs) with Samsung Electronics and SK Hynix for server memory supply. It is understood that some clients are seeking ultra-long-term contracts for memory supply lasting as long as 10 years through 2035, exceeding the usual three- to five-year long-term supply period.
China also has memory manufacturers such as CXMT (688825.SH) +1.840 (+4.279%) and Yangtze Memory Technologies (YMTC), but they are considered to lag behind South Korean companies in product competitiveness and mass-production scale for high-performance server memory. The difficulties faced by Chinese CSPs in procuring the required memory domestically are also believed to be one of the reasons they are seeking long-term agreements with South Korean companies.(su/ad)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-10-28 12:25.) (A Shares quote is delayed for at least 15 mins.)