SK Hynix says memory shortages to persist until 2030
SK Hynix expects memory demand to exceed supply through 2030, as AI infrastructure investment expands and new factories take years to build. The forecast could keep memory prices high, benefiting the Korean producer while adding cost pressures for PC and smartphone makers and their customers.
The company said 14 long-term agreements with major buyers will cover more than half its output in 2027 and 2028, with some customers seeking extensions. Quarterly revenue reached ₩104.6 trillion, up 328 per cent year on year, while operating profit was ₩87.68 trillion, up 486 per cent. SK Hynix plans to expand production of HBM4 and other AI-related memory, but expects PC and mobile device shipments to fall because of rising memory costs and shortages.
In short
- SK Hynix expects shortages to last through 2030.
- AI demand and slow factory expansion are driving the outlook.
- Higher memory costs may weigh on PC and phone shipments.
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The case for
A prolonged shortage may reflect a real mismatch between fast-growing demand for AI memory and the time and investment needed to build new capacity. Long-term supply agreements can give buyers more certainty and help SK Hynix justify expanding production, while strong prices may support investment in technology and future supply.
The case against
If supply remains tight through 2030, high memory prices could raise costs for PC and smartphone makers and be passed on to customers, potentially making devices less affordable and limiting shipments. Critics could also argue that long-term agreements reserving much of the output for major buyers may leave smaller customers with less access or bargaining power.
Explained simply
Memory chips temporarily store the data that computers need to use, and come in several types. High-bandwidth memory, or HBM, moves data quickly and is used alongside powerful processors in artificial intelligence systems.
SK Hynix is a South Korean company that makes memory chips, competing with firms such as Samsung and Micron. Building chip factories takes years, so producers cannot quickly increase supply when demand rises.
The supply outlook matters because memory is used in data centres as well as PCs and smartphones. Strong demand from AI companies can affect how much memory is available for other devices and what manufacturers and customers pay for it.
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