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

South Korean chipmaker SK Hynix announced on Thursday its plans to commence mass production of its upcoming HBM4E chips at its Indiana production site starting in the third quarter of 2029. SK Hynix's CEO, Kwak Noh-Jung, revealed that the company anticipates a continuing memory chip shortage extending until the conclusion of 2030.

The project, valued at over $4 billion, represents a significant growth phase for SK Hynix's presence in the United States as the demand for high-bandwidth memory, or HBM, escalates due to the increasing investments in artificial intelligence. The expansion project aims to bring production sites closer to key customers like Nvidia, Microsoft, and Google, which are major users of HBM.

Kwak emphasized that there are no apparent indications of a memory market decline, expecting that any eventual slowdown would likely involve a gradual reduction in demand rather than a sharp drop. He expressed no concerns regarding the market outlook beyond 2030. By 2030, SK Hynix projects that the Indiana facility will become a crucial HBM production hub in the United States.

Located at the Purdue Research Park in West Lafayette, this Indiana site is set to reach an annual capacity of hundreds of thousands of wafers, which will contribute to addressing the memory chip shortage facing the industry.