“Suppliers and buyers enter into 3- to 5-year Long-Term Agreements (LTAs), involving substantial upfront payments and established upper and lower price limits to ensure consistency. Consequently, even if a down cycle occurs, it is not expected to show the same sharp decline seen in the past.”

Jeongku Choi · said date not stated · reported 2026-10-15

Choi explained that long-term agreements between suppliers and buyers with upfront payments and price limits should prevent a sharp price decline even in a down cycle.