SK Hynix Predicts Unprecedented Memory Supply Shortage by 2027

SK Hynix's CEO, Kwak Noh-jung, forecasts a severe memory supply shortage by 2027 despite capacity expansions. This comes amid an AI-driven demand surge. The firm considers building wafer fabs in the U.S., Japan, or Southeast Asia, as part of a South Korean initiative to boost chip production.

SK Hynix Chief Executive Kwak Noh-jung has forecasted an unprecedented supply shortage in the global memory industry by 2027, despite efforts in capacity expansion. Speaking to Reuters, Kwak noted ongoing customer demand exceeding production capabilities may persist past 2030.

Kwak revealed that the U.S., Japan, and Southeast Asia are potential sites for future wafer fabrication investments, pending assessments of land, electricity, water, and labor costs. The decision is yet to be finalized.

Amidst speculation of a shift in the AI sector’s investment cycle, industry analysts confirm memory supply continues to struggle with demand. SK Hynix remains a key player in the AI supply chain, especially noted for its high-bandwidth memory leadership.