Crushing shortages have pushed long-term supply agreements for SSDs and HDDs to record five years — large customers are signing large contracts

Long-term supply agreements (LTAs) for SSDs and HDDs are now extending up to five years due to crushing shortages in the computer hardware market. Companies like SanDisk, Seagate, and Western Digital are signing large contracts with customers to secure guaranteed demand, allowing them to invest in expanding production facilities and next-generation technologies. These agreements provide manufacturers with clear visibility into real demand, reducing the risk of overbuilding capacity. However, the expansion process is gradual, and supply may still tighten before new capacity is fully realized.