SK Hynix CEO Warns 2027 Will Be Memory's 'Worst Year' Ever. Shortages May Outlast the Decade

SK Hynix CEO Kwak Noh-jung warned that 2027 will be the memory industry's worst-ever year for supply shortages, with tight conditions likely persisting beyond 2030, driven by surging AI demand. The warning aligns with similar forecasts from Samsung and Micron, as the three major DRAM makers prioritize premium segments like HBM, squeezing consumer memory supply and raising prices across PCs, smartphones, and consoles.

The CEO of SK Hynix, one of the three largest DRAM producers, predicted to Reuters that the memory industry will see its "worst-ever" supply shortages in 2027, reports the hardware/gaming news site Wccftech: SK Hynix has also forecasted that, given the current market demand, they will fall way short of fulfilling the market demand, and that will continue beyond 2030. The comments from SK Hynix are in line with what Samsung and Micron executives have already said. Samsung has warned of 2027 being the worst year in terms of shortages and that things will continue this way till 2028 and beyond. Meanwhile, Micron has said that the current shortages are only the "first innings" and that both DRAM/NAND supply will be tight, as they are only able to meet 40-50% of the total market demand in the coming years. Heightened demand from AI customers and multi-year agreements further put pressure on the market. The big three DRAM makers have already prioritized premium DRAM segments such as HBM and LPDDR5X, while commodity memory such as DDR5, DDR4, and entry-level LPDDR RAM has taken a back seat. While these have boosted the profits of SK Hynix, Micron, and Samsung, they have devastated the consumer segment, which is facing the worst kind of price hikes that are affecting all sorts of components and platforms, including PCs, Smartphones, Consoles, etc... SK Hynix, like Samsung and Micron, is also preparing to embark on a multi-year and multi-billion dollar expansion plan with new fabs and facilities being laid out across South Korea. SK Hynix is also considering the construction of Fabs in the US, Japan, and Southeast Asia, though the final plans are yet to be cemented. Micron recently started construction of its new facility that will be used for DRAM production. As SK Hynix proudly marks its Nasdaq debut, its CEO's sobering forecast serves as a clear reminder: the memory industry is entering its most challenging chapter yet. With 2027 poised to bring the worst supply shortages in history and tight conditions likely persisting beyond 2030, the AI boom is reshaping the entire semiconductor landscape. Read more of this story https://hardware.slashdot.org/story/26/07/12/1747258/sk-hynix-ceo-warns-2027-will-be-memorys-worst-year-ever-shortages-may-outlast-the-decade?utm source=rss1.0moreanon&utm medium=feed at Slashdot.