Ryan Wang 🇹🇼(@ryanwang):In the semiconductor industry, LTA has never meant absolute certainty. Wafers have signed LTAs, passive components have signed LTAs, and memory has also signed LTAs. History has shown that when prices fall, both sides are more likely to terminate the agreement than for the buyer to continue bearing the LTA.

2026.11.05 15:07

In the semiconductor industry, LTA has never meant absolute certainty. Wafers have signed LTAs, passive components have signed LTAs, and memory has also signed LTAs. History has shown that when prices fall, both sides are more likely to terminate the agreement than for the buyer to continue bearing the LTA.

P Equity Research 📰@pequityresearch

2026.11.05 14:59

Yes. I have heard the same from two other experts, including one I talked to back in August. He believes the customers of memory can simply hoard inventory during the duration of the LTA if they are really forced into it, but could result in a massive revenue slump post expiration of the contract. It would instead be better off to mutually rip away the contract in a downcycle. His views, not mine. But interesting to see it get mirrored by someone else.