Long-Term Agreements Are Reserving Most Memory Capacity Ahead of 2027

The memory industry remains tight as suppliers expand the share of output committed through long-term supply agreements, DigiTimes reports. The publication says agreement terms are increasingly extending from three to five years, with many industry participants expecting 2027 to be the tightest year in the current cycle. Supply-chain sources cited by DigiTimes estimate that Kioxia has about half of its capacity committed through LTAs, South Korea’s two major vendors reserve around 70%, and Micron has about 60% tied to such agreements. High LTA coverage can improve planning for large buyers and suppliers, but it leaves less flexible capacity for smaller customers and late purchasers. The report does not give a technology breakdown between DRAM, NAND and HBM.