SK hynix to start US AI chip output in 2029, sees memory shortage through 2030
WEST LAFAYETTE, Indiana — Korean chipmaker SK hynix said on Thursday it plans to begin volume production of its next-generation HBM4E chips at its Indiana facility in the third quarter of 2029, as its chief executive said the company expects a current memory chip shortage to persist through the end of 2030. Chief Executive Kwak Noh-Jung expects the site to eventually reach annual capacity of…
Korean semiconductor manufacturer SK hynix announced on Thursday its intention to commence the mass production of its upcoming HBM4E chips at its Indiana facility, scheduled for the third quarter of 2029. In a statement, the company's CEO, Kwak Noh-Jung, revealed that SK hynix anticipates the memory chip shortage currently plaguing the industry will continue until the conclusion of 2030. Kwak has projected that the Indiana site will eventually achieve an annual production capacity of hundreds of thousands of wafers.
The $4 billion initiative represents a significant expansion of SK hynix's U.S. operations, driven by the increasing demand for high-bandwidth memory (HBM) fueled by the explosive growth of artificial intelligence applications. With a focus on serving key customers such as Nvidia, Microsoft, and Alphabet's Google, SK hynix aims to bring its production closer to these major tech firms.
Kwak expressed confidence that no definitive signs of a memory shortage are evident, cautioning that any potential slowdown in demand would likely manifest as a gradual decrease rather than a drastic drop. Furthermore, he affirmed that he is not apprehensive about the company's prospects beyond 2030. By the year 2030, SK hynix expects Indiana to establish itself as a crucial production hub for HBM in the United States. The facility, situated at the Purdue Research Park in West Lafayette, is currently under development.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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