RAMageddon is ready to rage on through 2030

SK Hynix, a key player in memory production, has announced that it has sold out its capacity through 2029, setting the stage for a prolonged RAMageddon, or global memory shortage. During its latest earnings call, SK Hynix revealed that production of both DRAM and HBM (high-bandwidth memory) is effectively sold out not only for the current year, but also for the next several years, extending until 2029.

This prolongs the memory shortage for at least an additional three years before any relief is expected. The company's CFO, speaking through The Motley Fool and Seeking Alpha, explained that memory supply cannot keep up with the rapid growth in demand, making it difficult to fully meet customer volume requirements in the near term.

The complexities involved in implementing leading-edge processes and the significant lead times required for constructing new production facilities are cited as contributing factors. It is projected that the situation where supply cannot keep up with demand will persist for an extended period, with SK Hynix estimating that relief will not be seen until at least 2030.

Micron, another major memory producer, had previously predicted that 2027 would be even more challenging than 2026. The SK Hynix earnings call also disclosed that the company has entered into long-term agreements that already account for more than 50% of its total capacity for 2027 and 2028. While SK Hynix is not the largest name in DRAM/HBM production, with Samsung holding a larger share, other manufacturers are similarly grappling with these constraints.

PCMag notes that SK Hynix and other companies are working to expand production capacity, but the complex infrastructure required takes time to build out. The outlook is grim, with analysts advising that the situation is not likely to improve anytime soon.