Samsung Electronics is considering a plan to sharply extend the term of its memory semiconductor supply contracts. The main thrust is to convert contracts now signed on a quarterly or annual basis into long-term agreements lasting 3 to 5 years, Bloomberg News reported on March 18.
The move is aimed at stabilising supply and reducing concerns over shortages of key components.
According to Bloomberg News, Samsung Electronics co-CEO Young Hyun Jun (전영현) told shareholders directly about the plan at a shareholders meeting.
On the news, Samsung Electronics shares surged as much as 6.5 percent on the Korea Exchange. It marked a third straight session of gains. Samsung C&T and Samsung Life Insurance also rose as much as 8.9 percent and 13 percent, respectively.
Chi-gyu Hwang
delight@d-today.co.kr