The global shortage of memory chips could become even more severe in 2027 and persist beyond 2030, according to SK Hynix CEO Kwak Noh-jung, who warned that demand is rising faster than the industry’s ability to expand production.
Speaking to Reuters, Kwak said customer demand is expected to continue exceeding the company’s manufacturing capacity despite significant investments in new factories and equipment. He described 2027 as potentially the most challenging year for the memory industry from a supply perspective.
The warning is significant because SK Hynix is one of the world’s largest memory chip manufacturers and a leading supplier of high-bandwidth memory (HBM) used in Nvidia’s AI accelerators. Analysts at UBS also expect the global DRAM market to remain undersupplied until at least the second quarter of 2028.
The rapid expansion of AI data centers has fueled demand for HBM, DRAM, and storage products, prompting manufacturers to prioritize high-end AI chips over conventional memory used in PCs, smartphones, gaming consoles, and SSDs. As a result, shortages may continue to drive up component prices and production costs.
To meet future demand, SK Hynix is expanding facilities in South Korea and evaluating additional manufacturing plants in the United States, Japan, and Southeast Asia. The company is also investing $4 billion in an advanced chip-packaging facility in Indiana and $10 billion in its U.S. AI business.
Despite expansion plans by SK Hynix, Samsung, and Micron, experts say new semiconductor plants will take years to become operational, meaning supply constraints could continue for several years.
