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SK Hynix CEO Warns 2027 Will Be Memory's "Worst Year" Ever, With Shortages Set To Outlast The Decade
Wccftech • • business
Key Points:
- SK Hynix CEO Kwak Noh-jung has warned that the global memory industry will face its worst-ever supply shortages in 2027, with demand continuing to outpace production capacity well into the 2030s.
- The memory shortage crisis is driven by heightened demand from AI customers and multi-year agreements, prioritizing premium DRAM segments like HBM and LPDDR5X, while commodity memory supplies remain tight.
- Similar warnings have come from Samsung and Micron, with Micron stating that current shortages are only the "first innings," and both DRAM and NAND supply will remain constrained for years.
- The focus on premium memory has led to significant price hikes impacting consumer devices such as PCs, smartphones, and consoles, while Chinese DRAM and NAND manufacturers are expanding production to meet domestic demand.
- SK Hynix plans multi-billion dollar expansions with new fabs in South Korea and potential facilities in the US, Japan, and Southeast Asia, aiming to address supply challenges amid the ongoing AI-driven semiconductor boom.
