The AI memory boom is expected to keep supply under pressure well into the next decade, even as chipmakers ramp up production capacity.
The global memory chip industry is heading towards its worst supply shortage in 2027, with demand expected to exceed production capacity beyond 2030 despite aggressive expansion plans, according to SK Hynix Chief Executive Kwak Noh-jung.
Speaking to Reuters after the South Korean memory chipmaker’s Nasdaq debut, Kwak said AI-driven demand continues to exceed the industry’s ability to add capacity.
“We forecast that next year will be the worst year in the industry’s history from the supply perspective,” Kwak told Reuters.
He added that customer demand “will remain higher than our supply capacity even beyond 2030,” although the company is working to narrow the gap.
SK Hynix has emerged as a main supplier of high-bandwidth memory (HBM) chips used in Nvidia’s AI processors, making it one of the biggest beneficiaries of the AI boom. Reuters reported that Nvidia CEO Jensen Huang recently said shortages of AI memory would remain for several years, with SK Hynix expected to remain the company’s largest memory supplier.
Kwak also said the United States remains one of several candidates for a future wafer fabrication plant, alongside Japan and Southeast Asia, although no final decision has been made. The company is hunting locations based on the availability of land, power, water, skilled workers and competitive manufacturing costs.
Despite concerns that AI investment could slow, Kwak said memory demand continues to outpace supply, reinforcing expectations of a prolonged shortage across the industry.
