SK Hynix CEO forecasts memory chip shortage until late 2030 amid AI boom

The global demand for memory chips, fueled by the rapid expansion of artificial intelligence, is expected to outstrip supply until the end of 2030, according to SK Hynix CEO Kwak Noh-jung. Speaking at a press conference in West Lafayette, Indiana, Kwak stated that there are no significant signs of a downturn in the market, suggesting the current supply shortage will continue for the foreseeable future.

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No one can know for sure, but as of now, there are no significant signs of a downturn, and we expect this supply shortage situation to continue until the end of 2030.

Kwak highlighted a shift in the memory market, moving from commoditized products to customized solutions like High Bandwidth Memory (HBM). This evolution, he explained, requires closer collaboration with customers from the early stages of product development. This deeper integration allows SK Hynix to forecast market demand more accurately than in the past, when memory chips were largely interchangeable.

Looking beyond the current shortage, Kwak expressed optimism for the post-2030 memory market. He believes future downturns will be less severe, characterized by slower growth or stagnation rather than sharp declines. "The next downturn will be different from past downturns," he remarked, indicating confidence in the long-term prospects of the AI-driven memory sector.

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The next downturn will be different from past downturns.

Regarding potential investments in the United States, Kwak confirmed SK Hynix is open to expanding its presence, provided the location offers sufficient resources such as water, power, and labor, along with government incentives. However, he clarified that no specific candidate sites have been shortlisted or decided upon. "We are open to anywhere that can provide sufficient resources," he stated, referencing principles outlined by SK Group Chairman Chey Tae-won.

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For high bandwidth memory, we have to cooperate much more closely with customers to maximize performance in their systems.

SK Hynix is also exploring strategic investments in AI-related startups through a newly established U.S. subsidiary. These investments aim to foster synergy with SK Hynix's existing memory business, focusing on areas like digital signal processing, networking, and interconnect technologies. Kwak sees the integration of logic circuits into the base die of HBM4 as a significant first step toward merging memory and logic semiconductors.

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There is no shortlist yet, and nothing has been decided.