Memory supply crunch to last through 2030, predicts SK Hynix CEO

SK Hynix CEO Kwak Noh-jung has stated that the memory semiconductor shortage, caused by the rise of artificial intelligence, will persist until the end of 2030. He also suggested that more investment in the US could be pursued due to the country's interest in chip manufacturers establishing front-end manufacturing facilities there.

However, he did not specify any particular sites or finalization of investment plans. At a news conference in West Lafayette, Indiana, after breaking ground on an Indiana fab, Kwak responded to a question about the duration of the memory shortage, stating that while nothing is certain, there were no clear signals of a downturn. He further expected the situation to "continue to the end of 2030."

The CEO also expressed optimism for the post-2030 memory market, predicting that the next downturn will be different from previous ones. He explained that memory chips used in AI technology, such as HBM, are becoming customized products, requiring collaboration with clients from the early stages of product development. This evolution allows for earlier prediction of market demand compared to the past.

Kwak also mentioned the potential for additional US investments, though he did not provide any shortlisted locations, emphasizing that his company would consider sites worldwide if they offer sufficient resources. Regarding other pending issues, such as SK Hynix's IPO for its NAND flash subsidiary Solidigm and its major stake in Japanese NAND flash memory maker Kioxia, Kwak stated that discussions were ongoing, and they were not yet decided.