SK Hynix, Samsung in discussions with Alibaba, Tencent on DRAM supply: report

What happened

SK Hynix and Samsung are reportedly in discussions with Alibaba and Tencent about additional DRAM supply, possibly a 10-year deal running through 2035, according to Maeil Business Newspaper. SK Hynix ADRs rose 3% in premarket trading, and neither company immediately responded to a comment request.

Confirmed

Global impact / market context

DRAM is memory used in phones, computers and data centers. A long supply deal would give Alibaba and Tencent more predictable access to that memory, while giving SK Hynix and Samsung steadier sales, which matters because memory demand and prices swing sharply.

Analyst inference

The report ties Chinese cloud and internet companies to Korean memory makers, suggesting demand for data-center memory is driving longer contracts. A 3% premarket rise in SK Hynix ADRs indicates investors see potential benefit, though the talks are unconfirmed and may not lead to a deal.

Analyst inference

What to watch

1. SK Hynix is scheduled to report third-quarter results on Oct. 28, with analysts expecting $6.20 per share in earnings on $75.09B in revenue, which means profit per share and total sales, respectively. Confirmed
2. Watch whether SK Hynix, Samsung, Alibaba or Tencent confirm the reported 10-year DRAM deal, since the article says the talks were reported by a Korean news outlet citing unnamed sources. Proposed
3. Track whether a signed deal shifts capital spending toward memory production and improves cash available at the Korean suppliers, or instead raises costs for Alibaba and Tencent as they buy more memory. Analyst inference

Evidence

• seekingalpha.com