The world's second-largest memory chipmaker says supply will lag demand by over 20%, with major implications for AI infrastructure and crypto mining hardware
If you were hoping memory chips would get cheaper anytime soon, SK Hynix has some bad news. CEO Kwak Noh-Jung is warning that the global memory chip shortage will persist beyond 2030, extending a supply crunch that’s already reshaping how the world’s biggest tech companies plan their infrastructure spending. The timeline keeps getting longer. Back in March, SK Group Chairman Chey Tae-won told attendees at Nvidia’s GTC conference that wafer shortages could last until 2030, with supply trailing demand by more than 20%. Now the company is pushing that horizon even further out, suggesting the structural deficit in memory production is more entrenched than anyone initially estimated.
Why chips keep getting harder to find #
The explosion in AI workloads has created insatiable demand for high-bandwidth memory, the specialized chips that power the GPUs and accelerators inside data centers.
New wafer capacity takes four to five years to come online. SK Hynix plans to double its memory wafer capacity over the next five years. The company announced that commitment in early June when Chairman Chey reiterated the shortage forecast. SK Hynix spent approximately 30.2 trillion won, roughly $20B, on capex in 2025. The 2026 figure is expected to exceed that.
The great margin migration #
SK Hynix, Samsung, and Micron are collectively pivoting away from consumer-grade DRAM and NAND, channeling capacity toward high-bandwidth memory specifically designed for AI workloads.
The big three memory makers are locking in long-term contracts with hyperscalers, the massive cloud service providers that represent the largest buyers of AI-grade memory. These agreements provide pricing stability and revenue visibility that the memory industry has historically lacked. CEO Kwak Noh-Jung is expected to outline additional steps aimed at stabilizing DRAM prices, and the company is also exploring a US ADR listing to broaden its investor base.
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