SK Hynix to start US AI chip output in 2029, sees memory shortage through 2030

West Lafayette, Indiana - South Korean semiconductor giant SK Hynix announced on Thursday plans to commence large-scale production of its upcoming HBM4E chips at its Indiana manufacturing plant in the third quarter of 2029. SK Hynix's CEO, Kwak Noh-Jung, revealed that the company anticipates the current memory chip shortage will continue until the end of 2030.

The ambitious project, valued at over $4 billion, represents a significant expansion of SK Hynix's presence in the United States, driven by the increasing demand for high-bandwidth memory as artificial intelligence usage surges. The facility, located at the Purdue Research Park in West Lafayette, aims to eventually produce hundreds of thousands of wafers annually, bringing production closer to key customers such as Nvidia, Microsoft, and Alphabet's Google.

Despite the expanding memory market, Kwak expressed no immediate signs of a memory shortage and remained unconcerned about the outlook beyond 2030, stating that any potential slowdown would likely involve a more gradual decline in demand rather than a sharp drop. By 2030, SK Hynix expects Indiana to solidify its role as a crucial HBM production hub within the United States.