DRAM manufacturers secure $38 billion in prepayments to stabilize market

Major DRAM manufacturers, including Samsung Electronics, SK hynix, and Micron Technology, are stabilizing their business models through long-term supply contracts and significant advance payments. According to reports, these companies have secured approximately $38 billion in prepayments, cash deposits, and collateral from customers to mitigate market volatility and low margins.

Micron has reportedly secured $18 billion in cash from a $22 billion contract with 16 strategic partners, while Samsung has received 25% of the guaranteed funds for its five-year contracts. This financial buffer is expected to protect manufacturers' negotiating power until approximately 2029, after which the safety net of these deposits and price floors is expected to diminish as production facilities reach full capacity.

In terms of market performance, Samsung Electronics led the global DRAM market in Q2 2026 with a 39% market share, followed by SK hynix at 26% and Micron at 25%. Samsung's dominance has been supported by rising memory prices and an expanded footprint in the High Bandwidth Memory (HBM) sector. Analysts anticipate continued HBM price increases in late 2026, driven by upcoming GPU releases from NVIDIA and AMD.