SK Hynix CEO sees worst-ever memory supply shortage in 2027, says demand to outstrip supply beyond 2030

SK Hynix CEO Kwak Noh-jung anticipates a severe global memory chip supply shortage in 2027, describing it as potentially the worst in the industry's history. He stated that customer demand continues to rise while production capacity faces limitations. Kwak projects that demand will outstrip supply well into the next decade, even beyond 2030, despite the company's aggressive capacity expansion plans.

“

We forecast that next year will be the worst year in the industry's history from the supply perspective.

"We forecast that next year will be the worst year in the industry's history from the supply perspective," Kwak told Reuters in an interview. He emphasized that while SK Hynix is striving to address the issue, the fundamental imbalance between demand and production capacity persists. The CEO's comments come after SK Hynix's successful debut on the Nasdaq, highlighting its critical role in the AI supply chain, particularly through its development of high-bandwidth memory (HBM) essential for Nvidia's chipsets.

“

Our customer demand continues to go up, while our capacity has limitations.

The company's shares saw a significant increase following its Nasdaq listing, underscoring investor confidence in its position within the burgeoning AI market. The projected shortage suggests a continued strong demand for advanced memory solutions, positioning SK Hynix as a key player in enabling future technological advancements.

“

We still forecast that customer demand will remain higher than our supply capacity even beyond 2030. But we are doing our best to solve the problem.