SSD and HDD Global Shortage: Companies Rush to Sign Record 5-Year Contracts

SSD and HDD supply contracts are being extended to unprecedented lengths. SanDisk, Seagate, and Western Digital have all signed multi-year agreements with major cloud and hyperscale customers. Some contracts now span up to five years for SSDs and through 2029 for HDDs.

SanDisk, Seagate, and Western Digital secure long-term deals

SanDisk CFO Luis Visoso said SSD long-term contracts now extend to five years, with volumes growing over the term. Seagate CEO William Mosley reported EB-level supply agreements with nearly all major cloud and hyperscale customers. Nearline HDD capacity is almost fully allocated through 2027. Western Digital CEO Irving Tan confirmed contract terms extending to 2028 and 2029.

The long-term contracts provide stable cash flow and reduce price volatility for suppliers. However, retail supply may be squeezed, keeping prices high for consumers.

SanDisk, Seagate, and Western Digital have not confirmed the exact impact on retail availability. The companies continue to finalize on-demand custom contracts through fiscal 2027, with strategic planning discussions extending beyond 2028.