Amid the rapid development of artificial intelligence infrastructure, SSD and HDD manufacturers are shifting toward long-term contracts of up to 5 years. Specifically, SanDisk has begun entering into 5-year agreements for SSD supplies. This was reported by Ixbt.com xabar.
SanDisk CFO Luis Visoso noted that these agreements include fixed and variable pricing. They also specify quarterly delivery volumes.
This allows the company to forecast demand more accurately and align production with future revenue.
The planning horizon for hard disk drive manufacturers has also expanded significantly. Seagate CEO William Mosley announced that the company has signed major contracts with large clients for exabyte-scale deliveries.
Capacity for nearline drives is almost fully allocated through the end of 2027.
A similar situation is being observed at Western Digital. According to company CEO Irving Tan, contract terms are extending into 2028-2029.
As a result, storage devices are shifting from being commodities with volatile pricing to products with stable, multi-year demand. This approach reduces the risk of overproduction and helps companies keep pace with the growing demand in the artificial intelligence market.
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