Suwon: Jun Young-hyun, co-chief executive officer of Samsung Electronics Co., announced on Wednesday that the company is actively seeking to establish multiyear contracts with key chip clients as a strategy to enhance the predictability and stability of its semiconductor business. During a general shareholders meeting held in Suwon, south of Seoul, Jun emphasized the importance of these contracts for minimizing medium- to long-term uncertainties and securing steady business growth.

According to Yonhap News Agency, Jun highlighted that traditional supply agreements were typically annual or quarterly, but the shift to multiyear deals is expected to provide better business visibility and stability for both Samsung Electronics and its customers. This strategic move comes amid a memory supercycle fueled by the artificial intelligence boom, with Samsung poised to achieve record earnings by 2026.

Despite the promising outlook, Samsung Electronics has experienced significant fluctuations in its annual earnings due to inconsistent global memory demand. The company's net profit increased by 31.2 percent to 45.2 trillion won (approximately US$30.4 billion) in 2025, following a dramatic 122.5 percent rise in 2024, after a steep 72.2 percent decline in 2023.

Additionally, Samsung Electronics disclosed details about its semiconductor supply agreement with Tesla, initially announced in July. Han Jin-man, head of Samsung's foundry business, stated that the mass production of the next-generation Tesla chip is set to commence at the Taylor facility in the United States in the latter half of the following year, with design and development processes currently progressing smoothly.