TECH NEWS – As if that weren’t enough, the company’s CEO says the shortage will last until the end of the decade.
The memory shortage has affected every sector of the tech industry and seems to have become the norm. While the supply crisis persists, the CEO of SK Hynix, one of the three largest DRAM manufacturers, has stated that the situation in the memory market will soon worsen considerably. Just 25 years ago, the company faced its most difficult period (including the risk of bankruptcy), but it persevered through the crisis. The resilience and determination forged during that time are the driving forces behind SK Hynix today. In 2012, SK Hynix joined the SK Group, and together, they began shaping the future. Even when the future of advanced memory was uncertain, SK Hynix recognized the need for new technology, high-bandwidth memory (HBM), and became the first company in the world to bring it to market. Thanks to relentless innovation, HBM has now become central to the AI revolution. Building on its technological leadership in HBM, DRAM, and NAND Flash, SK Hynix now provides the key memory technologies that power AI infrastructure worldwide.
At an event celebrating the Nasdaq debut of SK Hynix’s ADRs, CEO Kwak Noh-jung stated that the memory industry will face the “most severe” supply shortage in history in 2027. SK Hynix also predicted that they will be far from able to meet market needs given current market demand, and this situation will persist even after 2030 despite aggressive capacity expansion. This aligns with previous statements from executives at Samsung and Micron. Samsung warned that 2027 will be the worst year in terms of shortages and that this situation will persist through 2028 and beyond. Meanwhile, Micron stated that the current shortages are merely the “first wave” and that they will only be able to meet 40–50% of total market demand for DRAM and NAND in the coming years.
Increased demand from AI customers and multi-year contracts are putting further pressure on the market. The three largest DRAM manufacturers are prioritizing premium DRAM segments, such as HBM and LPDDR5X, while mass-market memory products, such as DDR5, DDR4, and entry-level LPDDR RAM, are being neglected. While these developments have increased the profits of SK Hynix, Micron, and Samsung, they have had a severe impact on the consumer segment, which is experiencing significant price increases affecting all types of components and platforms, including PCs, smartphones, and game consoles.
The focus on premium memory has also enabled Chinese DRAM and NAND manufacturers to focus entirely on producing what their domestic customers need. Companies such as CXMT (DRAM) and YMTC (NAND) are doubling their production capacity. Like Samsung and Micron, SK Hynix is preparing to implement a multi-year, multi-billion-dollar expansion plan involving the construction of new factories and facilities in South Korea. SK Hynix is considering building factories in the United States, Japan, and Southeast Asia, though final plans have not been finalized. Micron recently began construction on a new DRAM production facility.
