Chinese Cloud Buyers Seek Samsung, SK hynix Pacts of Up to 10 Years

By Elena Vasquez

Chinese cloud service providers are seeking memory-chip supply agreements of up to 10 years with Samsung Electronics and SK hynix as rapid domestic AI demand tightens supply.

Why do Chinese buyers still favor Korean memory?

Samsung Electronics and SK hynix retain an advantage in technology and mass-production reliability for high-performance DDR and LPDDR memory used in AI servers. Industry sources said Chinese buyers still favor those products because around-the-clock AI data centers place a premium on operational stability.

A server manufacturer executive said: “Unlike DRAM used in PCs and smartphones, server DRAM, particularly memory used in AI data centers operating around the clock, requires higher reliability.” The executive added that evaluations show “a significant gap between CXMT’s server DRAM and products from Samsung Electronics and SK hynix.”

Chinese buyers still favor established Korean suppliers for AI data-center deployments, analysts said. They are also developing domestic memory chains involving CXMT under Beijing’s semiconductor localization policy, but the cited server-DRAM performance gap remains.

How have export controls reshaped procurement?

China began restricting Micron products in 2023, responding to U.S. controls on advanced-semiconductor exports to China. Micron announced its withdrawal from China’s market in 2025. That exclusion became another factor driving Chinese companies toward Samsung and SK hynix.

Chinese buyers want both server DDR and LPDDR supplies. DDR is a high-power standard designed for high-performance, large-capacity processing in PCs and servers. LPDDR is an ultra-low-power standard optimized to reduce power consumption and heat in mobile and on-device applications. Growing server use puts it in competition with smartphone and PC manufacturers for limited supply.

Daishin Securities expects memory prices to keep rising as server manufacturers become willing to pay prices comparable to server-grade memory for LPDDR. Samsung and SK hynix must also maintain steady deliveries to Chinese CSPs to protect their market shares in China.

How large is China’s AI infrastructure buildout?

China and the United States are among the world’s largest markets for AI data-center construction. A September SemiAnalysis report put China’s completed capacity above 24 gigawatts, second only to the United States at 56 GW. Approximately 20 GW of Chinese capacity sits under construction or in planning.

Chinese big-tech groups are developing the following AI data-center capacity:

• ByteDance: approximately 5.3 GW.
• Alibaba: 3.9 GW.
• Tencent: 2.4 GW.
• Baidu: 1.1 GW.
• Huawei: 1 GW.

China Mobile International, China Telecom and China United Network Communications Group, also known as China Unicom, are also expanding AI data-center infrastructure.

Can domestic suppliers close the gap?

Domestic semiconductor manufacturers are moving to capture demand from the buildout. Omdia data show Yangtze Memory Technologies, China’s largest NAND flash manufacturer, captured 38.5% of the mainland Chinese market in the second quarter, passing Samsung and SK hynix to take the top position. It marked the first time a Chinese company had ranked first in the mainland memory-semiconductor market.

How are long-term deals changing the market?

U.S. and Chinese big-tech companies are competing for constrained memory supply, and long-term agreements have become more common. During earnings releases, the world’s three major memory-chip makers said they had signed such agreements with key customers. Supply deals typically run five years, although pricing and advance payments vary.

Apple is reportedly the only member of the Magnificent Seven without a long-term memory supply agreement. The group comprises Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla. Industry observers expect Apple to sign before the end of this year.

Samsung and SK hynix need steady Chinese shipments to protect their market shares. Buyers face rising prices and competition for constrained LPDDR as China’s roughly 20 GW of additional capacity moves under construction or through planning.